The World’s Changing Fast, Gold Isn’t. And That’s the Point.
We’ve all seen the headlines: gold hitting record highs, surging demand, and investors piling in. But this isn’t some overnight success story. The real case for gold stretches back decades, and the numbers speak for themselves.
Since 1971, the US has finally come off the gold standard, and gold has delivered impressive long-term returns. Over that period, it averaged around 8.4% a year, which is pretty much in line with what global stock markets have done over the same time. Not bad for a lump of metal, right?
But here’s the part most people miss…
Since the start of the millennium, when markets have been more volatile, debt has exploded, and currencies have wobbled, gold has actually outpaced equities. In plain English, it’s been one of the strongest-performing major assets out there, delivering over 10% a year, while global stock markets have averaged closer to 6%.
Gold's Real Value: It's Not Just About Price
Beyond performance, gold brings something most investors don’t think enough about: diversification.
For decades, gold has had little or no correlation to stock markets. When stocks are flying, gold might be quiet. But when markets crack, think major crashes, recessions, or geopolitical flare-ups, gold has a habit of doing its own thing.
History backs this up. Over the last seven major global stock market crashes, gold delivered positive returns in all but one, and even then, the fall was modest compared to equities. On average, gold gained around 17% during those periods while stocks tanked.
In simple terms, it’s your portfolio’s seatbelt. You hope you never need it, but when you do, you’re glad it’s there.
Inflation, Currency Debasement & Gold
We don’t need to look far to see governments printing money like it’s going out of fashion. Debt levels are through the roof. Inflation may have eased slightly, but it hasn’t gone away, and currencies are under pressure in many places.
When that happens, gold tends to shine. It’s been a reliable hedge against inflation and currency debasement for centuries, and given where we’re heading, that role looks more relevant than ever.
Safe Haven in Times of Crisis
From the global financial crisis to the pandemic, and now the mess unfolding in the Middle East and Eastern Europe, gold has shown time and again that it’s where cautious money runs when the world gets ugly.
2025 is no different. With the Israel-Iran conflict escalating, oil prices rising, and global markets nervous, gold has surged as investors seek stability.
Accessibility & Liquidity
Gold isn’t hard to access. Whether you want physical coins or bars or prefer exposure through funds or vault storage, it’s simple to buy and easy to sell. (However, it will not be as accessible forever.)
For UK investors, certain gold coins, like Britannias and Sovereigns, are completely Capital Gains Tax-free, adding another string to their bow.
Central Banks are Buying, That Tells You Something
It’s not just private investors turning to gold. Central banks, especially in emerging markets, are snapping it up. They’re building reserves, reducing reliance on the US dollar, and quietly shifting global financial power.
When central banks make moves like this, they’re rarely for short-term gain; they’re positioning for the long haul, which should tell us something.
What About Crypto?
People often compare gold and crypto as alternatives to cash or the banking system. But let’s be real, they’re not the same. Recent data tells us this.
Gold has 5,000 years of history as a store of wealth. It doesn’t rely on technology, regulation, or market hype. Crypto has potential, but it's speculative, volatile, and still finding its place. In a crisis, gold's the safer bet. Let history do the talking.
The Flip Side, No Rose-Tinted Glasses Here
Is gold perfect? Of course not.
It doesn’t pay dividends or generate income. It can be volatile in the short term, and it might feel like dead money during stock boom times.
But for investors who understand capital preservation, diversification, and the importance of owning assets that aren’t someone else’s liability, gold makes a lot of sense.
Final Thoughts
Gold isn’t about get-rich-quick. It’s about protecting what you’ve worked hard to earn. It’s about having something real, outside the banking system, that holds its value when markets lose their way.
That’s why more investors, from cautious savers to central banks, are adding gold to the mix.
I’m not saying put everything in gold. But ignoring it completely? That’s a risk most can’t afford.
Disclaimer: This isn’t financial advice, just my perspective. Always speak to a qualified adviser before making investment decisions.
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Matthew Jones
Co-Founder
Precious Metals Analyst
Britannia Bullion
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