British Gold Exchange · Est. 1985 · London

Gold · Inflation hedge

Gold as an inflation hedge: how it has held its value

When inflation eats into savings and paper currencies lose ground, gold has historically held its value over long periods. Build a fractional holding in a physical 999.9 fine gold bar, from £250.

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Ownership

Allocated bullion

Custody

Insured UK vault

5,000 Years

Store of value

From

£250

Bar purity

999.9 fine

Investment calculator

Your investment£750.00
£250£25,000

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Your allocation of the bar

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Illustrative value

Annual growth+2.5%
Years held3 years

After 3 years

£808+£58

For illustration only. Figures are based on the annual growth rate you select and are not a forecast or a guarantee of future performance.

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Capital at risk · Not financial advice

Why investors hold gold as a hedge

How gold has behaved when currencies weaken

Inflation does more than raise prices. It steadily erodes the purchasing power of cash held in an account. A pound today buys significantly less than a pound did five years ago.

Gold has often moved against paper currencies. When central banks expand the money supply and real interest rates turn negative, gold has historically tended to rise. It has no issuer, and no central bank can create more of it.

Limited new supply

Unlike paper money, gold's supply grows by just 1-2% per year through mining. It cannot be printed.

Nobody’s debt

Gold has no issuer and cannot default. Your holding is allocated to a real bar in an insured, audited UK vault.

Record in past crises

Gold has often held up during financial crises, at times rising while equities fell sharply.

Recognised globally

Gold is recognised as a store of value around the world and is traded in every major financial centre.

The case for physical gold

A long-term store of wealth

Central banks, family offices and many private investors hold part of their wealth in gold as a long-term store of value, rather than as a short-term trade.

Fractional ownership gives you access to allocated bullion that was previously only available to those who could afford a full bar. Your holding is physical, allocated and audited. It is not a paper derivative.

Allocated, not pooled

Your holding is allocated to a specific, certified 999.9 fine gold bar. It is a physical holding, not a fund or a paper claim.

Insured throughout

Your allocation is protected by comprehensive vault insurance from the moment it is confirmed in writing.

No lock-in period

Sell your holding back to us at any time, at the prevailing market rate. We settle within one working day.

Written confirmation

The bar your holding is allocated to, and your exact allocation of it, are confirmed to you in writing.

Common questions

Frequently asked questions

How does gold protect against inflation?

As inflation rises, the real purchasing power of cash falls. Gold is a finite, physical asset that cannot be printed or devalued by monetary policy. Historically, it has maintained or grown its real purchasing power over long periods.

What if the gold price falls short-term?

The gold price can fall, sometimes sharply. Many investors hold gold for the long term, and over decades it has historically maintained its real purchasing power. Past performance is not a guide to future returns.

Is my gold physically held?

Yes. Your holding is allocated to a specific 999.9 fine 1kg gold bar held in a fully insured, audited UK vault.

Can I sell whenever I want?

Yes. There are no lock-in periods. Contact us to sell your holding and we will provide a buy-back quote at the prevailing market rate and settle within one working day.

What is the minimum investment?

You can begin from £250. There is no upper limit, and many of our clients hold significantly larger allocations.

Is this financial advice?

No. This page is for information purposes only. Fractional gold investment is an unregulated activity. Your capital is at risk. Please make your own assessment before investing.

Get started

Discuss a gold holding alongside your savings.

Speak with our team. We will explain your options clearly, with no jargon and no pressure. The first conversation takes five minutes.

0800 014 8323