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Is Gold a Good Investment? (2024 Market Insights)

This article has been reviewed and updated for 2024.

Gold has been trusted by human beings for millennia. Most people cannot explain why they are so fascinated by gold and yet there is something about it that has made them want to hold it and transact with it throughout time. Since before the Ancient Egyptians, through to the Romans all the way up to this present moment gold’s role in our lives is as old as time. 

Also read: What is Gold?

Investors believe it is worth investing in gold for many reasons. Here at GoldCore we believe gold is an excellent investment, for the following reasons:

  • Hedge: Gold has historically shown itself to be a hedge against major factors that affect our investment portfolios, including inflation, deflation, macroeconomic, geopolitical, systemic and monetary risk.
  • Safe haven -   Often gold is described as a ‘borderless currency’. This means that it operates outside of the fiat monetary system; central banks do not control its supply, demand or its gold price. This gives it the unique position of being both a safe haven investment and a safe haven currency. Because of its finite supply and indestructible quality it has shown itself to hold value over long periods of time, in contrast to many paper and physical assets. 
  • No third party liability - when you own physical gold bullion you have no exposure to third party liability. The gold is entirely yours for you to do as you please. Compare this to other currencies or stocks and shares, where the underlying asset is very much beholden to how external parties choose to act. 
  • Diversification - Precious metals have a historical negative or weak correlation to price movements in the financial markets, especially stock markets such as the FTSE. This lends itself well to a balanced portfolio, allowing the investor to take advantage of both short and long-term events. 
  • Liquidity - The gold market is one of the most liquid markets which makes it one of the easiest to buy gold and sell gold on. Its liquidity and global reach mean that there is no requirement on the buyer or seller to predetermine a price before entering the market, as the market sets the price for you according to demand and supply at that moment. It is straightforward to buy and sell promptly, unlike for other physical assets for example, a house, where you could be waiting months!
  • Storage - the beauty of buying physical gold is that there are a number of options when it comes to how it is stored. Some investors may decide they don’t want to store their gold at home. You can access well-established, secure and regulated intermediaries for long-term storage and insurance of bullion holdings, through your GoldCore account. This gives you more control, but at the same time access to gold markets should you decide to sell any of your gold bullion.
  • Protect Against Uncertainty -  Gold is known to be a safe haven in times of high-level economic policy uncertainties in the world, as well as a hedge across geopolitical and economic upset. We live in an age where uncertainty is rapidly becoming a way of life. In the last two years we have all been faced with the hard realities that come with a global pandemic, rising cost of living and the possibility of a third world war. It is imperative that we protect our portfolios against such events.

Is it worth buying gold?

Gaining exposure to gold is easy but when you are asking ‘Is it worth investing in gold’ it can start to get confusing as to where you begin your investment journey. In an age where anyone is able to open trading accounts or buy digital investment products there are a wealth of options out there. But, they are not all equal, nor do they bring the same benefits as one another. If you choose to buy gold mining shares, gold ETFs or gold derivatives then you must remember that you are not buying gold. 

The simple fact is that unless you buy bullion (a physical, tangible asset with intrinsic value) then you are just buying an asset that is another entity’s or third person’s liability. You do not own gold by virtue of owning these products. Once you have gold bullion in your diversified portfolio then it is certainly worth considering other gold investment products. 

If you have decided that gold is a good investment, then gold bullion is the best way to go.

Also read: Where to buy gold bars in UK?

Is gold bullion a good investment?

Gold bullion is the term for any investment grade gold product. There is a misperception that the term ‘bullion’ is only used for gold bars. This is incorrect. The most common forms of gold bullion are gold bars and gold coins. We find that many customers choose to hold both as part of their gold bullion holdings. 

Also read: Should I buy Gold or Silver?

Are gold coins a good investment?

There is no time like the present to invest in gold coins. They have remained a highly lucrative investment option for thousands of years. They are a long-term store of value that offers you the ability to both diversify your portfolio and safeguard your wealth.

Whilst gold bars and gold coins are very similar in terms of what they bring to the investment portfolio, gold coins do have some unique advantages. One in particular is the aesthetic differences between coins each time a new variety is minted. This is obviously a nice-to-have aesthetically but it also means that each coin is instantly recognisable worldwide. It also means that counterfeiters struggle to replicate such gold coins. Each coin contains unique markers and micro-graving within its design.

Investors also like gold coins as they offer more flexibility than gold bars might allow. Coins by their nature are small units, rather than one large unit, so you have more options when it comes to cashing in on your investment. For investors with smaller capital outlays, coins are also a great starting point in their gold bullion investment plan. 

Gold coins aren’t just worth their weight in gold, some may also have some numismatic value too. Depending on their age, some coins may have added commemorative or collectable value. In addition, the value of investment-grade gold isn’t impacted by VAT, as all bullion bars and gold coins are exempt.

Also read: What are gold coins?

Is it worth buying gold bars?

Some people argue that gold bars are an inefficient way to invest in gold. We would argue the opposite. To believe it is inefficient is to be unaware of the vast array of options that are available to investors who wish to buy gold bullion efficiently, securely and at a low premium. 

If you have a small initial capital outlay then coins might be a better starting point as small bars such as the 1g sold by the Royal Mint do not represent a good investment as they have massive premiums. 

Also read: How much does a Gold Bar Weigh?

However, it is worth buying bigger gold bars. Gold dealers, such as GoldCore, charge a much lower premium for these than you will see on smaller bars. You also have great options for storage: specialised insured vaults run by professionals in secure jurisdictions, as we offer at GoldCore, is the ideal choice for large gold bars. But don’t worry, if you are looking to own smaller bars or to include coins in your holdings then secure storage is still available across all of our products. 

The vaults available to GoldCore customers are not only extremely secure, but they also make the process of selling gold faster and easier, as the gold bars remain within what is called the “chain of integrity”. This makes buying gold bars a very attractive investment proposition. 

You can also read: How Much is a Gold Bar Worth in 2022?

What is the best way to buy gold?

There are a number of ways in which you can choose to buy gold bullion and hold it. GoldCore offers investors the opportunity to buy gold for direct delivery or secure storage in a variety of high-security vaults worldwide. Our team of experts have experience working with all classes of investors in the United Kingdom, from private individuals to companies.

Whether you decide to buy gold bars or gold coins, you can be sure that we have a solution to suit your needs. We offer a range of gold bullion products and services, such as:

You may also like to read: How much Gold can you travel with?