Why Gold Is Regaining Popularity Among UK Savers in Times of Economic Uncertainty

Why Gold Is Regaining Popularity Among UK Savers in Times of Economic Uncertainty

According to a recent report, the number of over-50s investing in gold has soared by 88% since 2021, which is almost twice the growth rate among the under-50s cohort – which has only increased 43%.

Across the UK, investors choosing to buy gold have surged, with record monthly highs and significant profits in 2025, specifically. But why is this the case, and if you’re an investor looking to diversify your portfolio, is gold really the right option?

Times of Economic Uncertainty

It’s telling that it’s only since 2021 that the number of over-50s turning to gold has accelerated so sharply. What has marked the first few years of the 20s? Economic uncertainty.

Whether it’s post-pandemic recovery challenges or rising inflation, fluctuating interest rates or geopolitical tensions, the world of trading has been affected by an increasingly volatile and unpredictable economic landscape.

Stock markets have swung sharply, bond yields have shifted, and currencies have experienced more turbulence than many investors have seen in decades. In this environment, what becomes appealing is a stable store of value, designed to remain strong even in the face of economic turmoil.

Gold as a Safehaven

Whether it’s a gold CFD, a futures contract, or a spot trade, gold offers traders a way to gain exposure to price movements while mitigating risk. Unlike equities or bonds, of course, gold tends to hold value when markets are volatile and inflation is rising.

The reason for this is that gold is not tied to corporate earnings or interest rates in the same way that stocks and bonds are. While a company’s share price can plummet if profits miss expectations or economic conditions deteriorate – which is what we’ve been seeing from 2021 onwards – gold’s value is largely driven by supply and demand dynamics and macroeconomic conditions – factors that often move in the opposite direction to equities during crises.

Because of this, gold has historically maintained purchasing power across the decades, even during severe market downturns, making it particularly valuable as a hedge against stock market volatility.

Let’s say the NASDAQ-100 suddenly experiences a downturn due to a sharp drop in tech stocks. While equity investors might see their portfolios lose value quickly, traders holding gold CFDs or futures could see the price of gold rise as demand for safe-haven assets increases.

In this way, it’s an inverse correlation that plays to the investors’ advantage: as riskier assets like tech stocks decline, gold often strengthens, providing a natural counterbalance in a diversified portfolio.

Diversification of a Portfolio

This is why we’re seeing so many investors across the UK are rushing to gold as part of a broader diversification strategy.

Savers, especially, like to spread risk across numerous different asset classes, so by including gold, they’re making sure that losses in riskier investments are offset by gains elsewhere. If you’re looking to save – whether that’s to prepare for retirement or to protect accumulated wealth – then there’s no question that gold should be something you’re thinking about too.

Of course, beyond its role as a hedge against volatility, gold can also serve as a liquidity tool in an investment strategy. Unlike certain illiquid assets such as property or private equity, gold can be quickly converted into cash when needed, making it an ideal option if you want a portion of your portfolio to remain accessible in case of emergencies.

Even if you’re just an investor looking for steady, long-term growth, there’s a huge advantage to rebalancing your portfolio. By periodically adjusting the proportion of gold relative to your other assets, you can easily maintain a consistent risk profile, helping you to lock in gains when markets fluctuate.

Not to mention, it can also complement a tactical allocation strategy, where you strategically increase gold exposure during periods of uncertainty.
In any case, incorporating gold into your portfolio is a good idea if you want to feel a little safer over the next few years. As geopolitical tensions rise and inflation continues to hold and put pressure on markets, this is not only a way to save and protect your wealth, but feel far more confident in your assets moving into the future.

 

 

Published Content

See all listings from Published Content

Newsletter
To sign up up for www.glos.info weekly newsletter, please click here.

Please mention www.glos.info when contacting this advertiser.