Appetite for investing in precious metals as a tonic for inflation is reflected in research findings.
BullionVault, a precious metals platform, said 34.8% of investors it surveyed globally said they believed investing in the likes of gold and silver would reduce the impact of inflation on their portfolios.
The firm found that inflation was the leading financial concern for private investors in 2023, with nearly half of the 1,829 survey respondents saying this was their chief concern, with “financial crash” also polling highly.
The primary reason for investing in physical bullion was diversification (37.6%), followed by resilience to inflation (34.8%).
Adrian Ash, director of research at BullionVault, said putting a tenth of investments each into gold and silver would have reduced losses on a 60/40 equity/bond allocation for UK investors by 6.4% on a total return basis in 2022. Without this, losses would have been 11% even before inflation erosion.
Drivers for precious metals prices next year are mainly expected to be monetary policy.
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