The Glitter of Gold: A Secure Harbor in Turbulent Markets

In the midst of rising market turbulence, the glitter of gold is drawing the attention of investors searching for a secure harbor for their assets. However, despite gold’s lure being undeniable, caution is advised by experts: gold investment ought to be a part of a more comprehensive investment scheme. Lewis Crompton, the CEO and founder of STARTrading, has affirmed the worthiness of gold as a secure refuge, identifying it as a ‘well-established financial route.’ He suggested that gold usually appreciates in value ‘at a rate in line with, or faster than inflation,’ making it a popular choice for those seeking an ‘asset protection solution.’

Crompton, nonetheless, raises the alarm against hasty decisions, stressing that investing without a comprehensive strategy in any asset class is ‘seldom a positive step.’ For those investors willing to wait, however, opting for gold could be an astute decision. Crompton elucidates, ‘the estimated value of gold in a span of 5 to 20 years is probable to surpass its present value.’

Paul Grant, renowned author of Money Remixed, concurs that despite the rising popularity of innovations such as cryptocurrencies, the allure of gold remains robust. Grant remarks, ‘Gold, and other similar precious metals, constitute reliable platforms for wealth accumulation and preservation.’ He emphasizes the historical importance of gold, reminding us that since its first minting back in 600 BC, gold has remained a ‘universal value holder,’ transcending ‘geographical boundaries, timeframes, and cultures.’

In present-day central banking systems, gold reserves feature prominently, highlighting the metal’s role as an emblem of both ‘fiscal stability and financial autonomy.’ Gold’s long-standing role as an inflation safeguard gains significance in the current economic landscape. Grant pointed out, ‘With an escalating cost of living and declining purchasing power of fiat currencies, gold commonly retains and even often boosts its value.’

In the aftermath of the 2008 financial crash, for instance, gold’s value saw nearly a twofold increase. Besides its role as an inflation shield, gold also serves as a buffer to riskier assets like equities and cryptocurrencies. As per Grant’s assertion, clever investment ‘isn’t solely about rooting for winners – risk management is a key role.’ Allocating just a fraction (5% to 15%) of a portfolio to precious metals can help in mitigating volatility, a tactic commonly endorsed by financial advisors.

Moreover, in an increasingly digitalized economic landscape, the physical and limited nature of gold actualizes its attraction. Grant stated, ‘There lies a certain comfort level in holding a tangible asset not susceptible to hacking, inflation dilution, or being digitally wiped out.’ There exists multiple ways for investors to gain gold exposure, ranging from owning physical gold to Exchange Traded Funds (ETF) like SPDR Gold Shares (GLD), gold mining stocks, and advanced futures strategies.

However, Grant maintains that the prime role of gold ought to be as a portfolio stabilizer, rather than a high-growth investment object. He indicated, ‘Wealth creation isn’t merely about return hunting – safeguarding what you’ve earned is equally fundamental.’ Ian Futcher, a financial advisor at Quilter, resonates with these views, remarking that gold prices ‘often ascend in times of economic flux and stock market volatility.’

Recent market instability has once again propelled the prices of gold to new peaks. From approximately £1,620 per ounce in early 2024, prices rose to more than £2,400 in April 2025. But, Futcher emphasizes that while gold can offer portfolio resilience during downturns, its role shouldn’t be overplayed. He suggests, ‘Ensure that gold only featuring as a portion of your portfolio, rather than the sole investment. Following market downturns, equities could experience a sharp rebound, and it would be unwise to miss out on these early recovery days.’

Discussing gold investment, Futcher alerts potential investors to challenges associated with physical ownership, including storage, insurance, and security costs. He recommends considering investment funds focusing on gold, which mimic gold prices and allow for convenient transactions, as a more viable alternative.

Futcher raises the point that mutual funds, which contain gold among other assets such as stocks and bonds, can be a good idea. This provides an opportunity for exposure to precious metals, while still leaving room for long-term growth. As always, the golden rule of investment applies – only put in what you’re willing to lose, and always consider consulting a financial advisor before committing to investments.