Why gold still outperforms over the long run in a balanced portfolio...

SOURCE

When markets turn volatile and uncertainty dominates the headlines, diversification becomes more than just an investing buzzword, it becomes a life line. Most investors understand the value of spreading risk across shares, property, bonds, and even crypto. Physical gold continues to be one of the most underappreciated tools for protecting and growing your wealth over the long term.

Gold moves differently from most other asset classes. While equities and property are tied to the broader economy, and crypto is heavily influenced by sentiment and liquidity, gold often charts its own course. During the 2008 financial crisis, while global stock markets were tumbling, gold prices climbed more than 25% in the following year. In 2020, as the FTSE 100 dropped by around 14%, gold surged by roughly 25%, reaching new all-time highs.

SOURCE

For UK investors, certain bullion coins , like Gold Sovereigns and Britannias — offer an additional advantage: exemption from Capital GainsTax. This means you can realise gains without the tax bite that often comes with selling other assets. Combine this with the fact that gold is highly liquid and can be sold quickly without affecting the rest of your portfolio, and you have an asset that’s both efficient and flexible.

SOURCE

Over the past two decades, gold has averaged annual returns of around 8–9% in GBP terms, delivering results comparable to equities but without the same level of correlation to market shocks. It’s not about replacing shares or property; it’s about balancing them with something proven to hold its value through economic storms. In the end, gold isn’t a relic of the past — it’s a strategic modern asset. Its independence from the banking system, resistance to inflation, and ability to preserve purchasing power make it a cornerstone of any well-balanced portfolio. For those aiming to protect wealth for the long term, gold remains an irreplaceable part of the mix.