Gerrards Bullion - Your guide to investing in gold and silver

8 When considering an investment in precious metals, both Gold and Silver offer unique benefits and drawbacks. Understanding their characteristics will help you choose the right mix for your portfolio. Why invest in Gold? Long-term value & stability Gold is renowned as a reliable store of value, maintaining purchasing power across centuries. Its price tends to be more stable than silver, especially during inflationary periods and economic stress. Gold’s value is less influenced by industrial demand, reinforcing its reputation as a safe haven during market downturns. Tax efficiency (UK) Unlike silver, gold bullion is exempt from VAT when purchased and stored in the UK. In addition, gold bullion coins such as Sovereigns and Britannias are also exempt from UK Capital Gains Tax (CGT), making gold especially attractive for UK investors focused on legacy planning and tax minimisation. Liquidity Gold enjoys global recognition and high liquidity. Its status as a fungible asset means it is easy to sell to dealers and institutions and can be converted into virtually any local currency around the world. Well-known coins and bars can be quickly traded, often at favourable rates. Portfolio diversification Gold is frequently referred to as the ‘crisis commodity’ due to its ability to hold value during financial and geopolitical uncertainty. Experts agree that allocating a portion of your investment portfolio to gold is an effective diversification strategy as gold’s performance often moves independently from stocks, bonds, or property.