Gold offers several powerful advantages as a store of value. Discover why more and more investors are turning to this precious metal.

The 5 Key Advantages of Investing in Gold

What are the advantages of gold compared to other investments?

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. Many beginner investors and those with modest incomes tend to overlook gold as a way to store their wealth… but that’s a mistake.

With persistent inflation, geopolitical tensions such as the continued war in Ukraine and political turbulence like government shutdowns in the US, investors are seeking safe havens for their assets.

Gold is often the ideal solution. The precious yellow metal can offer stability and protection during times of global economic and geopolitical uncertainty – and it’s accessible to a wide range of investors.

Ready to discover why gold could be your best financial ally? Let's take a closer look at the five key reasons why you should invest in physical gold rather than other assets.

1. Gold can protect against inflation and crises

Inflation is one of the biggest challenges for investors. When prices skyrocket, the returns from traditional investment methods, such as savings accounts, can struggle to keep up. This leads to a loss of purchasing power.

But gold can be your shield against this erosion. Unlike paper currencies which melt away like snow in the sun during periods of inflation, gold retains its intrinsic value.

Even better: gold is largely unaffected by economic policies or corporate performance. While stocks and cryptocurrencies can decline sharply during crises, the price of gold remains often stable – or even rises. That’s why it is perceived as a safe haven asset.

Any historical examples to demonstrate this?

Inflation due to the oil shocks of the 1970s. 

In the midst of an inflationary crisis, the price of gold rose from $35 per ounce in 1971 to $850 per ounce in 1980, a spectacular increase of more than 2300%.

 While stock markets were collapsing, the price of gold rose significantly, from $800 per ounce in 2007 to more than $1,900 per ounce in 2011. That’s an increase of nearly 140%.

In August 2020, gold reached a peak of $2,070 per ounce despite economic turmoil and extreme fluctuations in financial markets. This rise contrasted with the dramatic declines that were seen in stock markets and cryptocurrencies.

In 2025, inflation remained elevated across Europe. It has eased from previous highs seen in 2021 and 2022, but still sits above the 2% target of many nations.

Meanwhile, gold demonstrated strong resilience over the year. With prices exceeding 

, gold has outperformed many traditional assets over the past decade.

It’s a persistent misconception that gold is an investment reserved for the wealthiest or the elite. That is false!

Investors can buy physical gold in the form of coins or bars in a wide range of weights and sizes (see Gold Avenue’s 

 collections to get an idea of this range). The smallest bar available on the market weighs 1 gram, and as we write this article in November 2025, it’s available for less than €150.

Gold coins can also be traded for less than €150. It all depends on the type of coin, its year of issue, and market interest, but these low entry costs make gold far more accessible than most people think.

Want to go further? You can opt for larger bars (up to 1 kilogram) or rarer, more valuable coins. One of the main advantages of physical gold is that there’s a product for every investor and every budget, allowing you to build a tailored investment strategy.

See more about that point in the next section…

3. Gold allows you to diversify your investment portfolio

You’ve probably heard about the importance of diversification when it comes to investing. Diversifying your portfolio means spreading your investments across different assets to minimize risk. But did you know that gold can play a key role in this strategy?

Imagine you've invested all your money in one company. If that company runs into difficulties, you risk losing everything. Diversification helps mitigate this risk.

By including gold in your portfolio, you add an asset that has low correlation with stocks and bonds. This means that when stock markets fall, gold may not follow the same trend, providing a layer of protection against losses.

How to incorporate gold into your portfolio?

With GOLD AVENUE, investing in physical gold is simple and secure. You can purchase gold bars and coins online from trusted mints and refineries. Our products range from gold coins starting at 1 gram to gold bars weighing up to 1 kilogram.

GOLD AVENUE provides free storage for up to €10,000 worth of products, allowing you to store your gold safely in just a few clicks. You can then resell it at market price, commission-free, all from your online account.

In addition to diversification and protection against inflation, gold can also offer attractive returns. Historically, gold has tended to appreciate in value, helping to strengthen your portfolio over time.

One of gold’s often underestimated advantages is its liquidity.

Unlike some investments that can be difficult to sell quickly without suffering a loss, gold can be bought and sold relatively easily all around the world. This advantage makes the precious metal an ideal choice for investors seeking flexibility.

Gold is recognised internationally as a safe haven asset. Whether you’re in London, New York, Tokyo or Paris, it has a stable value and is always in demand. This global recognition means you can usually resell your gold quickly and at a fair price.

Interested in exploring physical gold? GOLD AVENUE offers a wide selection of high-quality, certified products. Online purchasing is secure, simple, and fast, allowing you to add physical gold to your portfolio in just a few clicks.

And when the time comes to sell, the platform enables you to resell your stored gold commission-free at the current market rate. Convert your gold investment into cash, 

One of the major advantages of gold compared to other investments lies in its favourable tax treatment.

In the UK, investment-grade gold (defined by HMRC as having a purity of at least 0.995) is exempt from VAT. This includes most gold bars and bullion coins.

Taxation upon resale: flexibility and advantages

While purchasing gold is free from taxation, reselling is another story.

The UK’s Capital Gains Tax – similar to many other European countries – applies when you sell an asset that has increased in value. This includes gold, unless the gold you own qualifies for an exemption. There are three main ways of qualifying for this exemption:

Certain gold coins minted by the Royal Mint (such as Gold Britannias and Gold Sovereigns) are designated legal tender in the UK. This means they are completely exempt from Capital Gains Tax, regardless of how much profit you make.

Storing gold bars and non-UK legal tender coins in Switzerland opens a new set of advantages. At GOLD AVENUE, all physical gold is VAT-free, stored tax-free in Swiss vaults and outside the UK’s immediate tax jurisdiction. UK residents must still declare their overseas holdings and storing gold abroad doesn’t exempt you from UK gold tax laws, but it can delay or reduce exposure to tax at the time of purchase, especially for large investments.

Investing in gold through a UK limited company also provides tax advantages. You can use company profits to purchase gold (after Corporation Tax), offset losses or depreciating assets elsewhere in your portfolio and potentially defer Capital Gains Tax by holding assets long-term.

our article on taxation and gold investments

Gold is proving to be a strategic and versatile investment, offering many advantages over other assets.

Protection against crises and inflation. 

Gold can act as an effective hedge against the erosion of purchasing power during periods of inflation. In times of economic crisis, gold has demonstrated its ability to maintain or even increase its value.

Entry prices start at less than €150 as of November 2025, making gold available to a wide range of investors.

Adding gold to your investment portfolio allows you to spread risk and reduce exposure to market volatility.

An asset that is relatively easy to trade.

 Gold is easy to buy and sell worldwide, providing flexibility for investors.

Purchasing investment gold is VAT-free and storing gold with GOLD AVENUE can offer taxation benefits on resale.

Want to start investing in physical gold? 

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