Gold is a unique asset: highly liquid, but scarce; it has many varied uses such as jewellery as well as investment. Ownership of Gold carries no counterparty risk and it can play a fundamental role in an investment portfolio via a wide-range of
Gold acts as a diversifier and a vehicle to mitigate losses in times of economic uncertainty and market stress. Historically, throughout millennia, it has served as a hedge against inflation and currency risk.
Over the past 10-years gold has on average provided a 7.7% annual return to investors, greatly exceeding those of the 'broader' commodities sector, cash and bonds.
Over time, fiat currencies – like Pound Sterling and the US dollar – tend to lose in value against gold.