Experts Advise Calculated Approach as Gold Draws New Investors

In the face of growing market instability, the allure of gold is once more coming to the fore, drawing in investors seeking a secure place to shield their assets. Nonetheless, it’s a consensus among experts that an approach to gold should be calculated and as a component of a wider investment plan. STARTrading CEO and founder, Lewis Crompton, echoed that gold’s standing as a safe refuge for investment is well-established, referring to it as a ‘familiar financial route.’

Mr. Crompton revealed that a consistent trend shows a growth in the value of gold ‘in conjunction with inflation, or at a faster pace,’ which is the reason a large number of people regard it as a ‘safety net and a means of safeguarding their assets.’ That said, he urges investors to steer clear from impulsive decisions, stressing that investments in any asset without a transparent strategy hardly ever yield positive results. For those investors who are willing to play the long game, however, they might find gold to be a prudent investment.

Highlighting on the potential of gold, Crompton shared, ‘The likelihood of gold being valued more in another five, 10, or 20 years from now is highly probable.’ Paul Grant, the acclaimed author of Money Remixed, concurs with the view and believes that despite emerging asset classes such as cryptocurrencies, the classic appeal of gold remains undefeated. His perspective is that, ‘Gold and other precious metals have remained proven strategies for wealth generation and preservation.’

Mr. Grant elaborates on the enduring importance of gold, explaining how it has been a ‘universal measure of wealth’ since its first coinage in 600 BC, overcoming every constraint of ‘time, geographical limitations, and cultural boundaries.’ Today’s central banks holding a significant quantity of gold reserves further cements its symbolic representation of ‘monetary stability and financial independence.’

In today’s climate where inflation has spiked, gold’s historical function as an inflation shield is particularly significant. As per Paul Grant, ‘When the cost of living escalates and paper money starts losing its buying capacity, gold not only retains but often enriches its value.’ A case in point lies in the aftermath of the 2008 financial turbulence when gold prices saw almost a two-fold growth.

Along with providing a safeguard against inflation, gold also presents itself as an offset to more erratic assets like equities and cryptocurrencies. Grant quips that successful investing is not only about ‘spotting winners but also about handling risk.’ A portfolio allocation of merely 5% to 15% towards precious metals can significantly reduce the volatility, a tactic commonly advocated by financial consultants.

Moreover, the tangible and limited characteristics of gold make it an attractive asset in today’s progressively digital economy. Grant highlights, ‘There’s a unique comfort in possessing a physical asset that’s immune to cyber threats, cannot be reduced to nothing, or inflated beyond its value.’ There are numerous avenues for investors fancying a piece of gold, ranging from physical bullion and exchange-traded funds (ETFs) like SPDR Gold Shares (GLD), to shares in mining and advanced futures strategies.

However, according to Mr. Grant, gold ought to be viewed as an anchor to the portfolio more than a high-yielding asset. He expounds his point stating, ‘Accumulating wealth doesn’t simply mean chasing high returns, equally important is safeguarding the wealth one has already garnered.’ Ian Futcher, a financial consultant at Quilter, shared similar sentiments, mentioning that the ‘rising uncertainty in economy and stock markets often result in gold prices hitting new heights.’

The recent market uncertainty, sparked by a series of unforeseen events, has once again escalated the price of gold to new peaks. The prices have soared from roughly £1,620 per ounce at the start of 2024 to over £2,400 in April 2025. Nevertheless, Mr. Futcher underscores the fact that while gold can act as a shock-absorber for a portfolio during times of distress, it should never monopolize the portfolio.

Mr. Futcher mentions, ‘The role of gold in any portfolio should be balanced and never be the sole investment. The potential for equities to rebound powerfully following market drops is significant, and it’s essential not to miss these profitable days which usually materialize early during recovery.’ For those investors keen on investing in gold, Mr. Futcher voiced a caveat, that possessing physical gold comes with its own set of challenges, including storage, insurance, and security expenses.

A more feasible alternative might be investment funds focused on gold which follow the price of gold and facilitate simple purchasing and selling procedures. Adding to this, Mr. Futcher mentions, ‘Multi-asset funds that comprise of gold along with other assets such as stocks and bonds are also worth weighing, as they provide access to precious metals while simultaneously presenting the potential for long-term growth.’

As always, there’s a golden rule of investing, one must never invest more than they can afford to lose. Moreover, before undertaking any investment decisions, one must consider consulting with a financial adviser.