Amid rising inflation and a persistent cost-of-living crisis, many Brits are searching for safe ways to boost their income. With global uncertainty on the rise, gold has emerged as a popular investment option. But is now the right time to invest in gold, and what should investors keep in mind?
Rick Kanda, Managing Director of The Gold Bullion Company, shares key insights on why gold investment should be approached as a long-term strategy rather than a quick fix.
Is 2025 the Right Time to Invest in Gold?
“Over the past two years, gold prices have surged significantly. Just last week (Monday, 2nd June 2025), gold rose over 2% to reach its highest point in more than three weeks,” Kanda explains. “Global geopolitical tensions and trade uncertainties have strengthened gold’s position, with many experts suggesting there’s never been a better time to invest.”
However, Kanda stresses that gold investment decisions shouldn’t hinge solely on market highs or lows. “Your financial stability is the most important factor. If you have the funds, are financially secure, and want a long-term store of value, then gold could be a good fit. It’s not about short-term price swings but preserving wealth over time.”
Gold’s Performance Amid the Cost-of-Living Crisis
Since the onset of the cost-of-living crisis nearly three years ago, many traditional investments like stocks and property have experienced volatility. In contrast, gold has outperformed most assets during this turbulent period.
“Looking at recent figures, a £10,000 investment in gold three years ago would now be worth approximately £15,004 nominally and £12,481 after adjusting for inflation,” Kanda highlights. “This return surpasses many alternative investments.”
Why Gold Is a Long-Term Investment
Gold’s limited supply plays a major role in its value retention. According to the World Gold Council, only around 216,265 tonnes of gold have ever been mined worldwide. This scarcity contributes to gold’s reputation as a ‘safe haven’ asset that holds its value better than stocks or real estate.
“Investors need to be patient and rely on gold’s gradual value appreciation to benefit from their investment,” says Kanda. “It’s crucial to avoid impulsive decisions. Market fluctuations are normal and should not trigger panic. If you invest with a long-term mindset focused on financial security, short-term declines should not undermine your confidence.”
