This post references and draws upon insights from “The Pure Gold Company Investor Guide 2024” – a publication by The Pure Gold Company (TPGC), a trusted name in physical gold investment.
Gold’s Investment Case is Shining Brighter Than Ever
In the face of inflation, war, and economic uncertainty, gold is once again dominating the conversation among private and institutional investors. With JP Morgan and Goldman Sachs projecting that the price of physical gold could soar to $4,000 by mid-2026, driven largely by record-breaking central bank buying, savvy investors are turning their attention to the age-old safe-haven asset.
But why now – and why gold?
Physical Gold: A Tier 1 Asset With Zero Risk Weight
Since 1988, physical gold has been classed as a Tier 1 asset, putting it on par with cash and government bonds in the eyes of banks and financial regulators. It carries a 0% risk weighting, meaning it’s considered among the safest stores of value – something no stock or crypto can claim.
Backed by international banking standards and embraced by institutions globally, this classification has had tangible effects on demand. According to data referenced in the TPGC Investor Guide 2024, gold has increased by more than 866% since its Tier 1 designation, thanks in large part to sustained purchases by global banks.
Central Banks Are Leading the Charge
HSBC recently reported that over 35% of central banks intend to increase their gold holdings in 2025, signalling a clear shift in asset strategy toward hard assets and away from fiat currency risk. TPGC highlights that central banks have added 10% to gold’s performance in recent years simply through their sustained demand.
In essence, the institutions controlling the money supply are hedging against the very system they uphold.
Performance Speaks Volumes
Gold isn’t just a defensive play. It’s been a high-performing asset over both short and long-term timeframes:
Over the past 5 years, £10,000 invested in physical gold would now be worth £16,031, outperforming the FTSE 100, property, ISAs, and government bonds.
Over 20 years, that same investment would have grown to £70,710, nearly six times more than a bank account and more than double the return of the FTSE 100.
Add in the tax-free status of certain Royal Mint coins and VAT exemptions on investment-grade bullion, and it becomes clear why TPGC positions gold not only as a store of wealth, but a genuine wealth-building tool.
Gold in 2025: A Perfect Storm for Growth?
The macroeconomic backdrop is fertile ground for gold’s continued rise:
Inflation is cooling, but not enough to restore confidence in fiat.
Interest rates are expected to fall, making non-yielding assets like gold more attractive.
Geopolitical instability – from the Israel-Hamas conflict to global banking collapses – has reignited demand for tangible, crisis-proof assets.
The Pure Gold Company makes a compelling case that now is the time to hedge, diversify, and protect your capital.
When the Banks Are Buying, Follow the Money
If the likes of JP Morgan, Goldman Sachs, and dozens of central banks are buying gold – and forecasting new all-time highs – then individual investors would do well to pay attention. Physical gold isn’t just a historic relic. It’s a forward-thinking strategy for anyone seeking long-term security and growth outside the banking system.