The price of gold has soared over the past year, reaching an all-time record high of more than $4,600 an ounce earlier this week.
Long considered a safe haven for investors’ cash, gold has been in the spotlight more than usual recently.
The price of the shiny stuff typically rises when markets start to run scared for some reason.
And there are plenty of those at the moment.
What’s going on in the world that has caused this increase?
From the US seizing the Venezuelan President Nicolás Maduro on criminal charges in the early hours of 3 January to persistent, violent conflict between Russia and Ukraine.
Ongoing brutal protests in Iran have seen thousands killed and the US government announced a criminal investigation into its central bank chairman Jerome Powell.
When there is such uncertainty, investors seek safety and gold is an asset that has a long history of fitting the bill.
At the start of 2025, an ounce of gold cost $2,645. Today, it’s trading at over $4,630.
If you’d bought £100 worth of the stuff a year ago, you’d be sitting pretty on just over £175 now.
But what next? Is it too late to benefit by investing in gold now?
‘AI may dominate headlines but gold has quietly been the 21st century’s star performer,’ says Chris Rudden, head of investment at digital wealth manager Moneyfarm.
‘Since 1999, gold’s value has risen more than elevenfold, compared to a 6.8-times increase for the S&P 500.’
While the value of all investments can go down as well as up, gold has a long track record of rising over time.
Jason Hollands, managing director of investment platform Bestinvest, says an important consideration is the future strength of the dollar.
‘While the second Donald Trump administration has never formally stated that it is pursuing a weak Dollar policy, the direction of travel has been clear,’ he says.
A softer currency improves the global competitiveness of US exports and senior figures around the President have long advocated this approach.
‘If the dollar continues to weaken, it should reinforce the case for holding a little gold, which has a long-established inverse relationship with the US currency,’ he says.
‘In our ready-made portfolios, we typically hold around 4.5% in gold via the Invesco Physical Gold ETC as a strategic diversifier.’
How to invest in gold
Investing in gold and precious metals can be done in a number of ways, each offering a slightly different range of risks and advantages.
Physical gold
Harry Thorne, chief executive at gold coin dealer Bullion Club, says how you buy matters as much as when.
You can buy physical gold in a number of formats, from coins to bars and even jewellery.
Investing this way can offer some tax advantages – for example, Royal Mint gold coins are exempt from capital gains tax due to their status as legal British currency.
Thorne explains: ‘The Royal Mint Britannias and Sovereigns allow investors to keep all their profits, regardless of the gain. Gold bars, however, remain subject to CGT.
‘Investment-grade gold is already VAT-free in Britain but choosing the right product can mean the difference between a tax bill and keeping every penny of your returns.’
Jim Tannahill, managing director at high-end pawnbrokers Suttons and Robertsons, points to second-hand gold or platinum jewellery as an alternative.
‘There’s a tax benefit people often overlook,’ he says.
‘In the UK, most gold jewellery is classed as a personal possession or chattel, meaning items sold for under £6,000 can be free from capital gains tax.’
Before you purchase physical gold, check the dealer is part of the London Bullion Market Association (LBMA), which will give you some protection as it’s an unregulated market.
You can buy directly from the Royal Mint, which offers gold and other precious metals and even a digital version of gold – DigiGold.
You’ll also need to factor in storage costs for physical gold – most dealers offer storage as part of their service.
Gold miners
Dan Coatsworth, head of markets at AJ Bell, notes that shares in gold miners often rise by more than the appreciation in the gold price in a rising market.
‘The higher the value of the metal, the greater the potential for gold miners to enjoy fatter profit margins and juicier cash flows,’ he says.
‘They were the hot trade in 2025 and Trump’s non-stop actions so far in 2026 have retained the sparkle in this part of the market.
‘Gold has gone up by 70% since Trump returned to the White House. The iShares Gold Producers ETF, which tracks a basket of gold miners, has risen by 137%.’
Funds and trusts
The easiest way to invest in gold while not overexposing yourself to one company or risk is to invest through a fund.
There are lots to choose from, each with its own approach to investing.
The simplest is to choose an exchange-traded fund (ETFs) or exchange-traded commodity (ETC) product.
Both are usually low cost options, with ETFs investing in gold miners and ETCs buying and holding the actual metal.
The advantage of investing this way is that you can buy and sell shares in these funds very easily and it’s simple to hold them in an investment Isa or self-invested personal pension.
Think long-term
Whatever approach you take, remember to consider how investing in anything fits into your long-term approach to saving.
The same principles apply.
One, invest in a range of assets to reduce your exposure to one sector, company or country falling out of favour.
Two, investing is a long-term game. Hold your nerve and leave your money where it is for a minimum of five years and you should see a benefit.
