Gold · Portfolio diversification
Gold for portfolio diversification
Many investors want part of their portfolio in something that does not simply follow the stock market. Gold has historically had a low or negative correlation with equities, and has often held up when markets fell. Add a gold allocation from £250.
Correlation to S&P 500
Low / Negative
Ownership
Allocated bullion
Bar purity
999.9 fine
Start from
£250
Exit
Any time
Portfolio allocation calculator
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Your allocation of the bar
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Illustrative value
After 3 years
£1,077+£77
For illustration only. Figures are based on the annual growth rate you select and are not a forecast or a guarantee of future performance.
Capital at risk · Not financial advice
The diversification argument
Where many portfolios are exposed
A portfolio made up entirely of equities, bonds and cash is exposed to one systemic risk, the financial system itself. When credit markets seize and equity valuations fall, correlated assets tend to fall together.
Gold has no earnings and no issuer that can default. Its value rests on physical scarcity and worldwide recognition. That is why many professional asset managers, from sovereign wealth funds to family offices, hold part of their portfolio in gold as a structural diversifier.
Low correlation with equities
During market downturns, gold has historically moved opposite to equities, cushioning overall portfolio drawdowns.
Currency independent
Gold is priced globally in US dollars, so for a UK investor it can help offset periods of sterling weakness.
Lower volatility
Gold has historically been less volatile than equities and many other commodities, although its price can still fall.
No earnings risk
Unlike a company, gold cannot miss targets, issue a profit warning or be disrupted by a competitor.
Why physical gold
How allocated gold differs from a gold ETF
Not a paper promise
A gold ETF is a financial instrument. It depends on a fund manager, a custodian and a legal structure. Allocated gold is a direct holding of the metal itself.
No tracking error
ETFs can drift from the spot price because of how they are structured. Your holding is valued directly against the bar.
Allocated, not pooled
Your holding is tied to a specific bar in an audited vault, rather than a claim on a pool of gold that may be partially leased or rehypothecated.
Written certificate of ownership
You receive formal written confirmation of your exact percentage of the bar. That document has real legal standing.
Talk to our team
Discuss a gold allocation for your portfolio.
Get in touch with our team to discuss adding a gold allocation to your portfolio. We'll explain the options clearly and help you arrive at an amount that makes sense for your situation.