In uncertain times, many investors turn to precious metals to protect their wealth, but simply buying gold or silver isn’t the whole story. Like any smart investment, building a diversified precious metals portfolio is key to spreading risk and giving yourself more flexibility down the line.
Here’s how to do it properly...
1. Mix Gold and Silver
Gold and silver each have their own strengths:
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Gold: The ultimate safe haven. Less volatile, long-term wealth protection, ideal for capital preservation.
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Silver: More affordable, and strong industrial demand.
Having a mix of both balances stability with growth potential.
2. Choose a Range of Formats
Different products suit different needs:
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Gold Coins (e.g., Britannia's, Sovereigns): Tax-efficient, globally recognised, easy to sell in small amounts, or large!
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Gold Bars: Ideal for larger, long-term holdings, but less flexible when it comes to part-selling. (Not CGT free).
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Silver Coins: Affordable entry point, CGT-free (for certain UK coins), more flexibility. (Not VAT free).
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Silver Bars: Good for bulk buyers, but less practical for everyday investors. (Not VAT free).
A sensible portfolio often includes a mix of coins and bars to give you both liquidity and long-term security.
3. Focus on Physical, Fully Allocated Metal
When it comes to wealth protection, physical metal you actually own beats paper promises every time.
Look for:
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Fully allocated coins and bars
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Secure UK storage if you don’t want to hold at home
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Trusted, transparent suppliers (no pooled, unallocated schemes)
4. Think Tax-Efficient
For UK investors, tax matters:
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Gold Britannia's and Sovereigns: Capital Gains Tax-free
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Silver Britannia's: Also CGT-free, offering added value
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Bars don’t carry the same tax perks, so structure your purchases carefully
5. Start Simple, Build Over Time
You don’t need to go all-in at once. Many successful investors:
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Start with recognised, tax-efficient coins
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Add bars for larger holdings as confidence grows
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Review their portfolio annually based on the market and personal goals
Final Thoughts...
A diversified precious metals portfolio isn’t about chasing price spikes, it’s about building real, tangible protection for your wealth over time.
Gold, silver, coins, bars, the right mix depends on your goals. But done properly, it adds a level of security the banks simply can’t match. Look at the history, at least that tells no lies, in a world full to the bring of them.
