Why Would I Want to Park Some of My Cash in Gold?

In a word: Inflation

Here’s some really simple maths for you.

Say you’ve got £50,000 (and let’s make two simple assumptions):

Assumption one:

Inflation is reducing you purchasing power by 3% a year – perhaps it’s running at 6% and you can get 3% (net – after tax) – on your cash deposit…

Assumption two:

The Gold price continues to appreciate at 10.9% per year (this is the average annual return in GBP since 2000 – that’s over 25 years).

Here’s the reality after just 3 years (really simple maths):

The purchasing power of your £50,000 = £45,664

The value of your cash in Gold = £68,194

That’s a difference of £22,563

We obviously need to adjust this for the 3% inflation which brings it down to £62,406 – a difference of £20,648

Now I know that cash gives you certainty. I get that. But it used to give you the certainty of BOTH how much you’d have (you agree the terms of the deposit at the outset) as well as what you could buy with it (inflation was quite low so after 3 years you’d still have a pretty good idea).

But times have changed and although you’ll have the certainty of how much you’ll have, inflation could well mean that you WON’T know what you can buy with it.

You’re essentially paying £20,648 for the certainty of what you’ll have. 

Which seems like a lot. Is that a trade you’re happy with?

But if you parked your cash in Gold, things could be very different.

Think about it. You haven’t invested in some sort of “sexy investment scheme”. We’re talking Gold – it’s been around for thousands of years.

And remember – we’re talking about starting with £50,000! If you’ve got more than that just think what inflation could be costing you.

What do you think?

Just to be clear: I’m not saying have no cash.

But I don’t think you want to have too much, especially if inflation takes off. Certainty is one thing, but you need to put a price on it.

And remember how liquid Gold is. You can get it into your account in a few days.

I appreciate the price is volatile, but what you could do is start by parking some of your cash into gold and if the price continues to rise, you might feel comfortable enough to invest some more. Yes, the price might fall, but if you’ve already made, say, 20% on it, then it’ll have to drop by quite a lot for you to have any concerns.

You don’t need to do it all in one go…but it might be a good time to start.

Don’t forget you can sell it and get the cash in your bank account in a few days if you need it. It’s VERY liquid.

So, What About Inflation?

This is all predicated on losing 3% purchasing power a year. But I think that I’m losing at least that, probably more.

I know we are told that inflation is lower, but what’s your experience?

You need to remember that it’s calculated using their bundle of assets and NOT YOURS. Perhaps you’re different and are comfortable with the CPI that’s announced, but I’m not.

You may find these inflation expectations interesting.

As you can see, some very credible organisations are already talking of higher inflation. Much higher.

Doesn’t it make sense to do something now?

After all, you get insurance before, rather than after the event.

Ready to Start Investing in Gold?

Inflation might feel invisible day-to-day, but over time, it quietly chips away at the real value of your money. While cash sits still, gold has stood the test of time as a reliable store of wealth—trusted for centuries to preserve buying power and protect against uncertainty.

If you're ready to take action and start securing your financial future, The Gold Program is here to help. Whether you're new to investing or simply want to diversify smarter, we’ll guide you through the steps to turn your cash into gold with confidence.

Click here to learn more and join The Gold Program today.

Don’t let inflation shrink your savings. Take control; go for gold.