There are many varied ways of investing your hard earned money

There are many varied ways of investing your hard earned money, maybe you could buy property, maybe the FTSE 100, maybe just leave it in a savings account. Ever thought about physical gold?

The chart below shows Physical Gold compared to some other popular investment strategies. We've imagined that you had £2500 to invest.
Over 20 years in a savings account that £2500 is now worth £3374.
Had you put that £2500 into physical gold it would now be worth £17,626

The below document shows a historical comparison of investment returns for a hypothetical investment of £2500 in various asset classes over three different time periods: 5 years, 10 years, and 20 years.

The asset classes included are:
Stocks & Shares ISA
Pension Funds
Property (Residential)
Bonds
Savings Accounts
Physical Gold
FTSE 100

For each asset class, the document lists the average annualised return (AAR) percentages over 5, 10, and 20 years. It then calculates what the initial £2500 investment would be worth based on these AARs for each time period.

By far physical gold is the strongest performer. Add to this, if you'd bought British Coins, these gains would be CGT exempt, and there are zero management fees. The only thing to consider is storage, and the spread on selling over buying.

The next best performer over 20 years is property. However if you consider all the applicable fees, the fact that you cannot get anything for £2500, and to realise any profit you need to be able to sell it, it actually looks a much less desirable investment.

At Diverse Equity Investments we ensure liquidity by guaranteeing to buy back any investment grade gold we sell (so long as it is still in investment grade condition). With investment banks and wealth managers expecting gold to more than double in the next 5 years, now seems like a great time to get your strategies aligned to hold some gold.