Mr Khalaf added: “Conservative investors may be tempted to move away from gold and return to their natural habitat. »
So should you buy gold?
The best approach is to view the value of gold as providing a bit of diversification in a portfolio. Indeed, it behaves differently from other assets, notably stocks.
Mr Khalaf said: “An investor can hold bonds and gold alongside stocks because they will tend to perform well at different times. But it’s not a shortcut to wealth.
“As historical returns show, gold carries significant risks. »
How much should you hold?
As with any other investment, the key is to spread your risks.
According to Khalaf, investors should limit their investments in gold to 5 and 10 percent of their portfolio.
When is the right time to buy?
If you remain confident about gold, now could be the time to take the plunge.
Mr Koudmani said: “Gold tends to perform very well when inflation is high, so this could be a good time to start investing and protect your money. »
How to invest in gold
You can buy physical gold in the form of jewelry, but you should always go to a reputable jeweler.
Ms Daniels-Daw said: “Note that there is usually a mark-up to cover manufacturing or labor costs. »
While it is also possible to purchase physical coins and bars, you need to think about storage. If you plan to keep gold in your home, it is advisable to invest in a high security safe and ensure you have sufficient insurance cover. That said, it is much more secure if kept under lock and key in a safe.
Mr Dickey said: “While many people aspire to own large gold bars, more affordable routes include owning fractional quantities of gold bars through digital gold products, such as DigiGold. »
These are kept securely in the Royal Mint vault. Expect to pay around 1 percent of the value of your gold, plus VAT.
Elsewhere, services such as BullionVault allow you to buy gold online and hold it in vaults on your behalf. The Pure Gold Company uses a third-party storage company, Loomis.
With any bullion dealer, be sure to check costs such as storage and insurance.
Likewise, many investors now choose to invest in ETCs (exchange-traded materials) – stock exchange funds designed to track the price of an asset, such as gold.
Mr Khalaf said: “These funds can be held within Sipps – self-invested personal pensions – and Isas to protect profits from capital gains tax.
“Most investors should stick to physically-backed ETCs, such as the iShares Physical Gold ETC. Although some funds invest in gold futures, these instruments are complex and risky.
“The vast majority of gold investors are better off sticking with vanilla gold ETCs, which simply buy and sell the precious metal itself.”
Fiscal advantages
You don’t have to pay VAT on investment grade gold, like bars and coins. And, if you buy legal tender Royal Mint coins, these will also be exempt from capital gains tax.
In it for the long haul
Once you invest in gold, you need to have a long-term view because you may have to wait a few years before you can sell profitably.
