The rapid rise in gold prices might have amazed some – but keen observers of geopolitics and its influence on the precious metals market will not be surprised.
Gold has historically been a safe haven in times of uncertainty, and in an era defined by a global pandemic, devastating wars and unprecedented trade tariffs, it presents a compelling investment opportunity. Interest among UHNW investors has grown markedly over the past five years, and experts stress that gold is more than a short-term trend and should not merely be regarded as a refuge in turbulent times.
Spear’s spoke to Neil Paisley, Managing Director at Baldwin’s, and John Reade, Senior Market Strategist, EMEA, at the World Gold Council, about the enduring appeal of gold and how much of their portfolios the ultra-wealthy should consider allocating to the precious metal.
According to the experts, gold’s rally is far from over. ‘Some believe that gold has been undervalued for many years and has not risen in price at the same rate compared to other assets or investments,’ says Paisley.
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Reade adds: ‘Due to the record gold prices we’ve seen this year – rising above $4,000/oz in October – more investors are buying in the hope that the rally continues.’
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The total demand for gold, including OTC, reached a record 1,313 tonnes in Q3 2024, worth around $146bn. Investment demand surged 47 per cent year-on-year to 537 tonnes, accounting for over half of total demand, driven by geopolitical volatility, a weaker dollar and investor ‘FOMO’ as prices climbed higher. Expectations that the Fed will lower interest rates in December and next year add to gold’s short and long-term appeal.
Gold is no longer the preserve of established investors; younger buyers are also entering the market. Adrian Ash, research director of BullionVault, reports that the company has seen unprecedented demand from Gen Z investors, with those aged 17 to 27 now accounting for over 16 per cent of its clients. Similarly, BullionByPost reports that 34 per cent of sales this year were to buyers aged 20 to 39, compared with 25 per cent for the whole of 2021.
Reade’s research supports this trend: ‘In 2024, UK investors aged 30–39 invested the most in gold compared with other generations, with 20 per cent of 35–39-year-olds investing in Gold ETFs and 18 per cent of 30–34-year-olds investing in gold bars or coins.’
Paisley adds that this growing interest among millennials extends to a specific segment of the market: rare coins and numismatics. Across generations, this niche is extremely buoyant, with record prices being set for coins in exceptional condition or of exceptional rarity.
In June 2021, a 1933 US gold coin sold at a Sotheby’s auction in New York City for a record $18.9m (£13.4m), while just yesterday a 1629 Bohemian 100-ducat coin sold for £1.8 million at an auction in Zurich.
Whether through bullion or rare coins, gold’s enduring appeal lies in its combination of tangible value, historical prestige and resilience in times of uncertainty. For investors, both established and emerging, it remains a cornerstone of wealth preservation – and one whose shine shows no sign of dimming.
