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Archived article Tax, investments and pension rules can change over time so the information below may not be current. This article was correct at the time of publishing, however, it may no longer reflect our views on this topic.
Want to invest in gold? Here are three fund ideas to consider.
This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.
18 July 2023
When the stock market is performing poorly, investors will often use gold to help diversify their portfolios. This is because the price of gold usually behaves differently to share prices.
The price of gold goes up and down depending on supply and demand, often moving in the opposite direction to shares. This means it can increase in price when shares fall and vice versa, but there’s no guarantee.
It’s one of the main reasons why during periods of economic stress, lots of investors see gold as a ‘safe haven’.
While the merits of gold as a diversifier are clear, it does come with its own risks. Prices can sometimes be volatile, affected by things like natural disasters, political tensions, or wider economic events like supply constraints.
We think it should only form a small part of a diversified portfolio. This is not
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