Why Should You Invest in Bullion?
Synopsis
Bullion is often viewed as a safe haven asset, a reliable store of value that can withstand economic downturns or political instability. While there are practical considerations and potential drawbacks to investing in bullion, it can provide a sense of security and stability in times of uncertainty.
Key Takeaways
By the end of this guide you'll learn:
- Why bullion during uncertain times.
- How has gold performed in 2025.
- What are the top UK bullion products.
- Benefits of choosing Chards for your bullion needs.
The Appeal of Bullion in Times of Uncertainty
Bullion options such as gold or silver have long been viewed as a safe haven asset. Or a reliable store of value that can be held onto in times of economic downturn or political instability. Today, where political tensions and economic uncertainty seem to be at an all-time high, it's no surprise that many are buying bullion as a way to protect their wealth.
But why exactly do people turn to bullion in tough times, and is it always a smart investment?
To understand the appeal of bullion, it's important to first consider its history and role in precious metals. Gold has been used as a form of currency for centuries. Its value has largely been determined by its rarity and ability to be easily traded. In modern times, gold is still considered a valuable commodity and is often used as a hedge against inflation and economic uncertainty.
How Has Bullion Performed In Recent Times?
Gold has seen huge gains in recent years. A lot has happened globally in the last five years (2019-25).
- Covid-19
- Russian Invasion of Ukraine
- China-United States trade war
- Israel-Hamas War
- Global inflation
- General Elections
Over the course of these events the price of gold has hit hundreds of new all-time highs.
How has gold performed in the last five years?
- 5 Years Asset Performance: +80%.
- 3 Year Asset Performance: +63%.
- 1 Year Asset Performance: +33%.
May 2025 Update:
On April 22nd the gold price per ounce hit a new all-time high of £2,611. The US also witnessed a record high, $3,502 on the same day. Many of the largest investment banks have re-evaluate their gold price predictions for 2025 and beyond. US bank, Goldman Sachs, raised its end of 2025 gold price forecast to $3,700 up from $3,300.
World Gold Council Gold Update:
The World Gold Council recently released their 'Gold Demands Q1 2025 report'. Some of the highlights are:
- Average quarterly price in US Dollars: $2,860/oz, up 38% year-over-year (y/y).
- Q1 gold demand overview: Total Q1 gold demand was 1% higher y/y at 1,206 tonnes - the highest for a first quarter since 2016.
- Gold ETF's Surge: The demand for gold ETFs increased by 552 tonnes, up 170% y/y; the highest since Q1 2022.
The Psychological Factors Behind the Desire to Buy Gold
So, why do people buy gold in times of uncertainty?
One reason is that gold has a reputation as a safe haven asset, meaning it is expected to hold its value or even increase in value during times of market turmoil. This is because gold is seen as a more stable and reliable investment than stocks or other financial instruments, which can be more prone to fluctuations and unpredictability.
Another factor that drives people to buy gold in tough times is the fear of missing out on potential future gains. With gold prices historically trending upwards over time, some people may feel pressure to get in on the action before prices rise too high. This fear of missing out can be especially pronounced during times of economic uncertainty, when people may be looking for ways to secure their wealth.
There are various forms in which gold can be purchased, including coins, bars, and exchange-traded funds (ETFs). Each option has its own pros and cons. It is important to carefully consider the cost and logistical issues involved in acquiring and storing gold.
Other Types Of Bullion
The most common types of bullion are gold, silver, platinum, and palladium, but other metals can also be considered bullion. It is a term that tends to be reserved for gold and silver that is at least 99.5% and 99.9% pure.
Silver: Silver's price typically mirrors gold's movements but at a more affordable level. As such, silver can be a great starting point for expanding and diversifying a portfolio.
Platinum: Platinum offers portfolio diversification and is preferred by some investors because it is less expensive per ounce than gold.
What Are Our Top Bullion Products
Below displays a selection of our best-selling bullion options.
Also highlighted are the premiums and quantity breaks for each product. Quantity breaks refer to the pricing structure where purchasing larger quantities results in lower premiums per item. This means that by buying more, you can benefit from reduced premiums.
CGT Exempt 1 oz Platinum Coin Best Value NewOut Of Stock
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Why Choose Chards Coin and Bullion Dealer?
If you aren't already working with us, here's what you're missing out on:
- 60 Years: Among the first UK bullion dealers, trusted by investors for 6 decades.
- Top Reviews: 6,000+ Trustpilot reviews with an average rating of 4.8.
- Engaging Content - 8,500+ YouTube subscribers enjoying weekly videos.
- Convenient Locations - Two teams based in London and Blackpool.
- Stay Informed - Monthly round-ups, reactive market news, and new releases.
- Expertise You Can Rely On - We bring decades of numismatic experience.
Conclusion
So, is gold a smart investment in tough times? As with any investment, it's important to carefully consider the potential risks and benefits. We are advocates of physical gold ownership and preserving wealth using gold, and we have build a world class business around this belief for the past 6 decades. We hope our guide gets you to the same conclusion and we would be delighted to help you make gold part, or indeed a growing part, of your investment portfolio.
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