As the Israel-Iran conflict adds to the boiling pot of…
As the Israel-Iran conflict adds to the boiling pot of uncertainty and gold becomes the second biggest global reserve asset, how do I invest in gold?
On Friday morning, Israel conducted targeted strikes on Iran’s nuclear sites, military bases and killed two top Iranian commanders.
When the markets opened, everything fell into the red.
Gold immediately rose 1 per cent as investors recognised that gold was the right move on the global chess board as the economic and geopolitical pieces surround the investor.
For the past 12 months, Iranian businesses and families have not-so-subtly been preparing for this moment. Gold prices in Iran have shot up over 80 per cent as growing concerns over US sanctions and military action have caused the country to pile into gold. This way, their money is sanction-proofed, maintains its value, and guarantees liquidity in an uncertain climate. Like Trump, they know the value of gold.
The Trump family releases ‘Trump mobile’. A $499 gold smartphone.
The key questions for investors to ask themselves are the following:
No one yet knows the answers to these pertinent questions as the situation is still developing, but it is perhaps a good opportunity for investors to evaluate the risk profile of their portfolios. Those who had diversified and understood the fundamental drivers of gold before “Liberation Day” are perhaps sleeping a little better at night.
Nonetheless, the situation in the Middle East is unsettling institutional investors, governments and also central banks. The price of oil spiked up to 12.5 per cent a barrel immediately after the attacks. If oil infrastructure becomes a point of contention in this conflict, then central banks have a serious dilemma over interest rates. Especially in the US where Trump has already expressed frustration over the Chairman of the Federal Reserve bank, Jerome Powell, for not cutting interest rates quickly enough. It might also mean central banks add more gold to their reserves.
The European Central bank also writes that gold has overtaken the euro as a global reserve asset. This is rather big news and should cause gold holders to smile ear to ear.
Gold comes second to only the US dollar, the reserve currency of the world. The report consolidates gold as a fitting hedge against volatile public markets, geopolitical fragility and growing concern over the safe haven status of the dollar.
Bullion gold made up 20 per cent of global central bank reserves in 2024 whereas the euro was only 16 per cent. Strong central bank buying helped drive the gold price up 30 per cent last year and is a key fundamental driver for the gold price in 2025. Year-to-date, gold has gone up 27 per cent hitting historic highs and, with economic and geopolitical uncertainty in the mix, is expected to continue climbing. Gold reserves are at similar levels to the Bretton Woods era suggesting serious concern over the devaluing of currencies and the US debt problem, exacerbated by the “big beautiful bill”, which sparked the fiery back-and-forth between Elon Musk and Donald Trump on social media.
On his platform X, formerly Twitter, Musk called the trillion dollar spending bill an “abomination” claiming that the president’s tariffs would cause a recession. He also called for the president to be impeached and claimed that Trump was ungrateful for his financial support during the campaign.
Since the spat, Tesla shares fell by 14 per cent marking its biggest one day drop ever. It has resulted in the billionaire to back track on his comments as the president threatens to cut government contracts to his companies.
But Musk’s criticisms of the bill and how it would add trillions of dollars to the US deficit is one of the key drivers for the price of gold. Trump’s bill shows that there is no effort to control debt levels and the tariffs in place do not ease bond market worries.
How to invest in gold
Many retail investors think that gold is an asset that is reserved for central banks and high net worth individuals.
The opposite couldn’t be more true.
Anyone can own gold and thereby have their own hedge against uncertainty, protect against devaluing currencies, and access to one of the oldest and best performing asset classes in the world. You best believe that all the institutional investors, money managers, and hedge funds boast their returns every year because they have exposure to the precious metal.
There are 4 simple steps: Identify, Invest, Grow, Sell.
At Bullion House, we help our clients with every step of the way and are always happy to answer any questions regarding your portfolio.
In the meantime let’s go through the steps.
We specialise in tax-efficient investment grade gold coins because we find these are the best ways for investors to maximise their returns. Because these investment grade coins are legal tender, meaning they have monetary value, they are capital gains tax free.
Gold bars simply track the gold price but the owner must pay capital gains tax when they liquidate the asset.
Gold coins can track the gold price just as well like the Britannia coins. But there are also other coins such as the Queen’s Beasts and Tudor Beasts that allow the investor to own a piece of history, with unique designs, and fetch a healthy premium on top of the gold price.
Unique coins marked for special occasions (such as the Diamond Jubilee), coins with artful designs, and coins packed with captivating storylines all reward the investor above the spot price.
Therefore, the investor should identify how much capital they wish to allocate and the characteristics of their gold investments.
Once the investor identifies the above, they are ready to invest.
Contact us so we can set up an account for you and answer any questions you may have before you get started.
We provide you with access to a personal specialist to help you with every step of the way.
This is the easy part.
Allow your money to work hard for you through the gold price and the supply and demand mechanics of unique coins.
Bullion House provides insight on the market and developments in the gold price so that our clients can keep track of their portfolio developments.
When the time comes to sell, get in touch and we will take care of the rest. Sell instantly or opt to have your coins sold on consignment to realise more gains. At Bullion House, we have bought back from countless clients as we assure them of their cash through our strong buy-back policy.
Discover all there is to know about buying gold for investment:
Need Assistance? Our expert team is ready to answer any questions you may
have about investing in gold and silver.
Give us a call at 0207 117 2889 or book an appointment to see us in person in our London Showroom.
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