Gold as a Complement to Property
Gold is everything that property isn’t — and that’s exactly why it’s so powerful alongside it.
You’ve probably built a property portfolio you’re proud of. But what if you could make it even stronger?
By combining property with gold, 1 + 1 could equal 3. Gold may help you not only grow your wealth — but also protect it.
The question shouldn’t be, ‘Which is better, investing in gold or property?’ Instead, you should be asking how these two key investments can complement each other. Let’s dive into why a combination of property and gold works so well.
Cashflow & Liquidity
Investing in property offers strong cashflow through rental income — but it’s illiquid, expensive to transact, and not divisible (you can’t just sell the spare bedroom).
Gold investments, on the other hand:
Offers no income, but
Is highly liquid
Is easily divisible (sell £10,000 of gold without offloading the rest of your gold investments)
Investing in gold could provide you with nice a “cash cushion” when you need it, without disturbing your long-term property strategy.
Diversification
Property and gold prices don’t usually move in the same direction. For example, during a financial crisis:
Property may stagnate or drop; whereas
Gold often rises, acting as a counterbalance
If we hit difficult times it’ll be nice to know that you’ve got some of your capital in an asset class that could be doing well. Diversifying your portfolio with gold and property could be important to you.
There are many different ways you can invest in gold:
Physical gold
ETFs (directly linked to gold price)
Funds
Mining companies (which are different in many ways – some expertise could really help you here)
Why do you want to be diversified you may ask?
The answer is simple – it reduces risk and allows for offensive strategies during downturns. You might find yourself at a competitive advantage if your competitors are forced to sell property in a falling market to raise cash, but you can simply sell some gold.
Not only that, but if you’ve got the capital, you might even be able to add to your investment portfolio at distressed prices – making it even better!
Currency Protection
Most property investors hold domestic assets (e.g., all UK-based properties) exposing them to one currency: Sterling.
Gold is:
An internationally asset
It’s considered valuable regardless of where it is, as a gold investor you’ve got exposure to the gold price and not the value of your particular currency.
Case in point: Over the last 10 years, GBP lost 15.82% vs. USD.
Because of the nature of gold, it allows you to preserve purchasing power globally — I repeat, you’re exposed to the gold price, not just your local currency.
It’s worth adding that not only is your property investment portfolio probably in Sterling, but also your house. You’ve got a lot of exposure to sterling.
Inflation Hedge
Investing in both gold and property hedge against inflation, but in different ways:
Gold: Often preserves wealth during inflationary periods
Property: Gains from rising rents and values over time
Cash, however, erodes in value.
Gold investments has returned 10.6% per year on average (GBP terms) since 2000 — considerably higher than inflation.
The other point I’d add is that you need to look at your own personal level of inflation rather than the headline number that’s released to the general public.
The headline number is their basket, NOT yours. Your own level of inflation could be dramatically different to that headline number.
This is important for several reasons, but let me give you one. If the headline is say 4% and an employer gives someone a pay rise of 8%, as far as they’re concerned they’ve given the employee a pay rise of 4%. But if that employee’s personal level of inflation is 10%, they’ve actually received a pay CUT of 2%. It’s important.
This goes to show the real-world implications of investing in gold vs property.
Crisis & Economic Cycle Balance
When markets are under stress:
Property may suffer (especially commercial/luxury sectors)
Gold often thrives
Having some gold in your investment portfolio offers stability during turbulence — a rare quality when most other assets are sliding.
You don’t need me to tell you that we live in uncertain times. Gold could be a good way to help your stress levels!
Capital Growth vs. Capital Preservation
Property investments: Long-term capital growth + rental income
Gold investments: Capital preservation during uncertainty
Both have a role — but growth is meaningless if you can’t keep the gains.
If you’ve made some gains from property, don’t you want to try and keep them?
Think about investment cycles. Nothing goes up forever – but I cover more on these in my E-book.
Tax Efficiency
Certain gold coins (e.g., Britannia’s in the UK) may be capital gains tax-free (”CGT”). You can also invest in gold bullion in your pension where you don’t pay CGT.
Always consult a financial adviser, but this could be a serious competitive advantage if you’re able to not only make some money on your gold investment, but also if you can do it on a tax-free basis.
I appreciate you may have your property in your pension portfolio (in which case it may already be CGT free), but if you don’t and you’re potentially paying capital gains on any sale, then having some tax efficient gold could be very useful.
Gearing & Risk Management
Leverage amplifies property returns — and risks. Great in a rising market, but it can decimate your capital in a falling one.
You need to remember two things:
In a rising market you may be able to get higher levels of leverage than in a falling one.
Whilst interest rates are very relevant to mortgage rates, there’s no guarantee that falling interest rates will lead to falling mortgage rates. SWAP rates are very relevant.
Gold can provide liquidity to ride out storms, so you don’t have to sell property at a loss. Having some gold in your portfolio could be particularly useful.
Even if you're unleveraged, gold’s historical returns (an average of over 10.6% per year since 2000 (in GBP)) warrant attention — especially if your property returns (obviously including rent) are lower than this.
Remember to look at the average – there are obviously good and bad years!
Succession Planning
Passing on property isn’t always smooth:
Kids may not want to manage it
They may not work near the property so living in it might not be an option
Potential family tension or inheritance disputes if their ideas/plans are different to yours
Divorce scenarios can force property sales
Gold does not need managing
It’s divisible if you’re ever in the unfortunate situation of dealing with a divorce (when you’ve gifted the property to your child)
It’s easy to pass on (there aren’t valuation issues)
Simple to store or sell
The bottom line is no one’s ever upset about inheriting gold!
Affordability & Market Dynamics
The housing market is driven by affordability:
High loan-to-values + low mortgage rates = greater affordability = higher prices (people can afford to pay more)
But you need to remember that Mortgage rates are linked to Swap Rates, not just interest rates.
If inflation persists, Swap Rates may stay high even if interest rates fall — keeping mortgages expensive.
So if interest rates fall property may NOT becoming more affordable if Swap rates don’t follow.
I know a lot of property investors feel that a decline in interest rates (which is bullish for gold) is likely, but they don’t make the connection with Swap rates.
How to Add Gold to Your Property Portfolio
If you’re starting to think that a diversified investment portfolio with property and gold could be for you, the Gold Program is a practical guide to combining gold with your portfolio.
Step 1: Learn how to buy, store, and manage physical gold. I show you how you don’t need to take delivery, but can have it stored and insured by the people you bought it from.
Holding it like this can give you a ready source of cash if you need it.
Step 2: Build a personalised portfolio of gold investments — including:
Funds
ETFs
Mining companies
These can all listed, so liquid as well. Another source of cash for you, but generally in higher risk opportunities.
You’ll receive a fortnightly report that both shows you how to buy Gold and build you own portfolio PLUS:
The Beginner’s Guide to Investing in Gold – Overview & insights
Where the Funds Are Investing – Save time with research-backed picks
The Six Pillars of Investing – My personal investment framework
Portfolio Workbook – Helps balance risk & diversification
Free Equity Research – From Edison Research
Free Access to the Resourcing Tomorrow Event – Meet companies, network, and learn
The aim? Protect your cash with gold, and build a smart, liquid, diversified portfolio.
Ready to add gold to your portfolio? Check out the Gold Program here.
Final Thought
I made my money in property. I love it. But I was told: never love anything that can’t love you back. Gold doesn’t love you back either — but it might just protect what you’ve already built.
