I INVESTED A FIVE-FIGURE SUM IN GOLD. I’VE TRIPLED MY CASH IN SEVEN YEARS

Gerard Boon started investing in gold seven years ago and has since tripled the return on his initial investment.

The 29-year-old managing director of Boon Brokers, who lives in Norwich, says he has invested in the precious metal for its “safety and reliability” as other investments have shown far higher volatility.

On Wednesday, gold bullion prices hit a record £3,000 per ounce.

Though it is not immune to price fluctuations, gold has a reputation as a stable asset, and often performs well when there is economic uncertainty.

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Boon invests elsewhere as well but says he finds the “reliability” of gold “comforting”.

He has invested five figures in gold and says he has tripled his cash in seven years.

He invests via the Royal Mint, with another advantage being that bullion coins from here are exempt from capital gains tax (CGT) for UK residents due to their status as legal British currency.

Other investments generally face CGT after gains of more than £3,000 per year are made.

“In truth, I’ve personally always viewed gold as a hedge against inflation and economic uncertainty, and while it doesn’t generate the flashy returns like other avenues of investment might, it also provides a unique financial stability that is increasingly rare today,” says Boon.

He adds: “Over the years, the returns have been strong enough to validate the decision, but for me, it’s the duality of profits and security – not just about chasing profit. Gold’s true appeal lies in its resilience, preserving value in a way that cash or other investments often cannot.

“I see it as a foundational part of a diversified portfolio rather than a speculative bet, which is why I continue to hold a significant portion of my investment in it.”

Aside from gold, Boon’s largest investment is in the S&P500 – a fund that tracks the biggest companies on the US stock exchange – with his second largest being the Nasdaq – a fund that tracks technology stocks.

He says gold makes up the third largest portion, approximately 20 per cent.

He does not plan to “cash out” his gold in the near future, with the price currently still rising.

More investment experts have started warning that a correction to stock markets may be coming in the near future, particularly in the US, after strong returns in recent months.

Jamie Dimon, chief executive of JPMorgan Chase, said in an interview with the BBC on Thursday that he was “far more worried than others” about a serious market correction, which he said could come in the next six months to two years.

In light of this and other warnings, some are suggesting that investors consider options like gold.

Dan Coatsworth, head of markets at AJ Bell, said: “Now is a good time to check if your wealth is properly diversified. That means having exposure to different assets like shares, bonds, commodities such as gold and property, as well as to a range of sectors and geographies.”

How do you invest in gold? 

You can buy bars via the Royal Mint, which produces gold bullion and coins for the UK and other countries.

However, if you buy the bars, you have to pay for storage and insurance, which gets expensive.

Most people do not do this; they invest in funds that either track the price of gold or are invested in ancillary businesses, such as storage and insurance businesses.

Some examples of these funds include BlackRock Gold and General, which is a fund that invests in gold managers.

You can also invest in a tracker fund – via a stocks and shares ISA – that follows the value of gold, such as iShares Physical Gold. It seeks to track the day-to-day movement of the price of gold, less its fees, by holding gold bullion.

For most investors, according to Fidelity, gold is only ever going to be a minority position within their portfolio. For investors whose main objective in holding gold is to hedge against extreme uncertainty, a common allocation is between 5 and 10 per cent.

How much are people making?

Depending on how much money people have invested in gold will depend on how much they are making.

Platforms have reported seeing an increase in people investing in recent times.

There are many new users starting to buy gold with small sums on the online marketplace, BullionVault, it said.

However, there is a more dramatic jump in larger customers, with the number of first-time purchases worth over £100,000 running five times greater than the average level of the past 52 weeks so far in October.

For reference, people who first bought gold on BullionVault in 2025 accounted for 8 per cent of all gold owners at the start of last month, but they accounted for 13.4 per cent of September’s sellers, clearing a profit on average of more than £150 for every £1,000 invested.

The strong performance of gold so far this year means anyone looking to buy now will pay a high price and take the risk it could fall in value in future, although many experts say it is likely that the surge in gold investment will hold firm as political, fiscal and financial uncertainty deepens.

2025-10-09T12:04:05Z