26 October 2024: The price of gold today, as of 8.43am, was £2,119.84 per ounce.

The graph below displays the past performance of gold. Past performance is not a reliable indicator of future results.

Some investors consider gold to be a safe-haven asset. They rely on the theory that when the prices of shares, bonds and property drop sharply, gold (as a non-correlated asset) may hold its value and could even increase in price as nervous investors rush in to buy.

Investing in gold is also a way to add diversification to your investment portfolio. When you hold a diversified mix of different assets, including gold, varying returns can help protect the overall value of your investments.

For investors looking to gain exposure to gold, there are several options to consider. Each has its pros and cons...

For example, one option is to buy gold in physical form:

Alternatively, it's possible for investors to consider investing in gold indirectly:

You might consider investing in gold if you're looking to hedge against risk or diversify an investment portfolio which already contained other assets such as shares, bonds, and cash. Gold would probably not be your first choice to earn long-term capital growth.

The above chart shows how the gold price has performed over the past five years. Remember that past performance provides no guarantee for future returns

Gold prices can be extremely volatile, and that means that gold isn't an entirely stable investment. In fact, you can easily craft a well-diversified investment portfolio entirely without gold.

It should also be noted that gold in its physical form, unlike other investments, does not produce an income or yield.

If you buy physical gold, you also need to consider where you are going to keep it, and whether there will be costs associated with secure storage.

Studies have found that gold may be an effective way to defend your wealth against inflation, but only over extremely long periods of time, measured in decades or even centuries. A 2022 insight paper from Wisdom Tree looking at the investment case for gold, described the precious metal as "an excellent store of value".

Over shorter time periods, the inflation-adjusted price of gold fluctuates dramatically, typically making it a poor near-term hedge for inflation.