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Gold Is the Ultimate Store of Value

Author: Ian Davis - Bullion Manager

Published: 14 Nov 2018

Last Updated: 9 Jul 2020


Gold has been a means of storing and displaying wealth for thousands of years. From ancient buildings clad in gold through to jewellery and precious artefacts, the world has always seen gold as something of value. Aside from this, gold has been used as the base metal for currencies since the first Lydia coins circa 7th century BC. As currencies have developed and matured, gold has maintained its purchasing power and over the centuries this has remained constant.

Gold Has Always Been Valuable

Precious Metals As Money

Historically, precious metals (both gold and silver) were used to make coins and currencies. In some cases, many modern day coins are still issued with a denomination which can come with a number of tax benefits such as capital gains tax exemption

Currencies, due to their nature and the economy, are subject to fluctuations and can even devalue so if you hold a lot of wealth in currency alone the risk is rather high that at some point you will lose some purchasing power and wealth.

Governments and banks control this through the processes of quantitative easing and interest rates (amongst others) leaving you somewhat out of control of what happens to your money; you may find the purchasing power of your "paper" money decreases significantly. We firmly believe that your money is safe with gold and that it should be used as an effective hedge against other investments. For example, gold often performs well during economic downturns or uncertainty. We only must look at the financial crash of 2008 and the monstrous rise of the gold price up to its peak in 2011 to illustrate this.

Rising political tensions, Brexit, and ongoing military campaigns often influence the price of gold as investors move away from stock, property and other investment tied too closely to a national economy. In conclusion, many people, including ourselves, see gold as the best way to safeguard your money and wealth.

Further Reading

You may wish to view all of our articles on our gold guide.

We also bring up to date market information on our news page. 

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