Perhaps you’ve been saving for years, received an inheritance, or are just starting your investment journey. As cash savings steadily lose purchasing power to inflation, many investors turn to gold as a proven store of value. So is gold a good investment? In this guide, the team at BullionStar draws on years of experience in the precious metals market to answer that question, and explain exactly why.
Is Gold a Good Investment? The Direct Answer
Yes, we believe gold is a good investment, and one that should be considered by all private investors. It is important to note this does not mean you should invest all your savings in gold. Gold is a good investment when it forms part of a balanced, diversified portfolio. Having even a small portion of your personal wealth invested in gold can help reduce risk, protect against inflation and economic uncertainty.
Why Is Gold a Good Investment
So, why is gold a good investment? Below are some of the key reasons we believe gold is worth investing in:
- Historical Precedent – Gold is an asset that has been highly valued throughout history, and until the 20th century was used as one of the primary forms of money. Unlike stocks, bonds, or currencies, gold has never gone to zero. No government can devalue it, and no company can go bankrupt holding it. That track record spans thousands of years and every major civilisation.
- No Counterparty Risk – Physical gold has zero counterparty risk. It is a tangible asset that you can hold and control, completely outside of the banking system. Unlike stocks, bonds, or even cash in a bank account, physical gold doesn’t rely on any institution remaining solvent or honouring its obligations. What you hold is simply yours.
- Safe Haven – Gold is one of the ultimate safe haven assets, hedging against inflation and performing well during periods of economic and political turmoil. When stock markets fall, currencies weaken, or geopolitical tensions rise, investors historically flock to gold, driving its price higher precisely when other assets are struggling.
- Excellent Performance – Gold has delivered outstanding long-term returns, rising approximately 3,500% over the past 50 years and 600% in the last two decades alone. That comfortably outperforms many traditional asset classes over the same period, and the trend shows no sign of reversing.
Is Gold Still a Good Investment?
It is always important to consider an investment on its current and near-term outlook. Gold is typically seen as a long term investment, held over several years or decades even, but it’s certainly worth asking the question ‘Is gold still a good investment?’. Both when you initially buy, and periodically as you reevaluate your investment strategy, it’s a good idea to see how gold is performing and what forecasts are predicting.
One of the beauties of gold is that it is a very stable asset; volatility can occur, but historically it tends to steadily gain value over time. If you’re planning to invest over a long period then you can largely ignore short-term volatility, and take the broader picture into consideration. In the next section we take a closer look at gold’s performance, but past trends certainly suggest gold is still a good investment.
Gold has hit new all-time highs in 2026, and despite a pullback in recent months, it remains at levels that would be considered historically high. It can be concerning to buy an asset when it is at or near record highs, but expectations for gold remain positive. An increasingly fractured world, rising economic stress, and high demand from multiple sectors; all of these suggest gold will climb higher and that gold is still a good investment today.
Gold’s Historical Performance and Returns
In the last 50 years, gold has risen 3,500%, from US$128 per ounce in 1976 to around US$4,500 today. Gold’s historical performance is one of the key reasons it is a good investment.
50-year gold price chart showing gold’s performance from 1976 to 2026.
The performance of gold over time is one of steady gains, but as seen on the 50-year gold price chart above, there has been a marked acceleration since around 2006. In that 20-year period, gold has risen 600% and 260% in the last 10 years. Gold’s long term performance is where the metal truly shines, but recent years have offered quicker returns.
These historical gold returns demonstrate the metal’s ability to act as a safe haven during times of crisis. The gains seen between 2008 and 2011, for example, reflect the Great Financial Crisis, triggered by the collapse of the US housing market and subprime mortgages. While the S&P 500 stock index fell approximately 56.8% during that period, gold instead climbed to new all-time highs of around US$1,900 per ounce, gaining 170%. The same was seen during 2020 and the recession sparked by the Covid-19 pandemic, gold pushed to further records while other assets faltered.
One of the core reasons gold is worth buying is how it tends to move in the opposite direction to other assets, particularly stocks. By holding gold as a portion of your portfolio, it can help cover potential losses from other assets and help protect the value of your savings.
The Pros and Cons of Investing in Gold
Like any investment, there are drawbacks and benefits of gold investment, which are worth weighing up with respect to your personal situation and goals. Below is a table showing some of the gold investment pros and cons.
| Pros | Cons |
|---|---|
| High Liquidity – Can easily be sold globally | No Yield – Return is only realised when sold |
| Physical Asset – No counterparty risk | Storage Costs – Large holdings need space and insurance |
| Safe Haven – Performs well during recessions and hedges inflation | Tax Considerations — Some gold products may be subject to capital gains tax, though tax-efficient options are available |
| Portability – Gold can be easily transported |
While there are reasons not to invest in gold, the benefits certainly outweigh them in our opinion, especially when investing in a balanced way. Stocks and bonds can provide the regular yield you’re looking for, while gold provides the steady accumulation of wealth to be realised when you’re ready.
Storage costs can vary greatly depending on how much gold you’re investing in. Many people are happy to keep some gold at home; in fact, having that direct control and ownership is part of the appeal. With most other investments you will introduce counterparty risk, relying on banks, brokers, or private companies to remain functional. For those who prefer professional storage, costs needn’t be prohibitive. At BullionStar, we offer gold storage in Singapore, with storage fees starting from 0.09% per annum for our Bullion Savings Program, and 0.39% for gold bars and coins.
Although some gold investments can be liable for tax, there are many tax-efficient options to choose from. BullionStar is based in Singapore, one of the world’s most favourable jurisdictions for gold investment. Qualifying ‘Investment Precious Metals’ (IPM) can be bought without any GST, and sold without capital gains, making it an excellent option for investors. International investors are recommended to carefully check tax rules in your country of residence to see if you can benefit from investing in tax-free gold.
When Gold Becomes a Good Investment
From the perspective of a long-term investment we would say gold is always a good investment. As discussed in the earlier section, gold performs best over the long term, hedging against inflation and protecting a portfolio from any periods of market volatility.
This makes gold a great option to consider for retirement. Steadily buying gold over the course of your working life, or using an inheritance to help fund a larger purchase, can leave you with a substantial nest egg to help you through your later years. Over the 40-50 year period that many of us will work, gold has historically performed very well (3,500% in the past 50 years). While past performance doesn’t guarantee what will happen in the future, it gives us a clear view of the potential for gold over the long term.
Gold can also play a role in formal pension structures. In the UK, physical gold can be held within a Self-Invested Personal Pension (SIPP), allowing investors to benefit from tax relief on contributions while building long-term exposure to gold. In the US, a Gold IRA operates similarly, letting investors hold IRS-approved gold within a tax-advantaged retirement account. Tax treatment depends on individual circumstances and may be subject to change. We recommend seeking independent financial advice.
For those in Singapore and across Asia, gold held through BullionStar already benefits from a highly favourable tax environment, with no GST on qualifying Investment Precious Metals and no capital gains tax on disposal.
For investors with a shorter-term outlook, there are market indicators to look for that suggest when gold is about to become a particularly good investment.
Key indicators include high inflation, dollar weakness, and geopolitical or economic instability. When global conditions look volatile, gold tends to perform particularly well. These scenarios typically see elevated demand for gold, and a higher price as a result. Learning to recognise these indicators can help you time your investment in gold for maximum returns; just remember that in the long term gold performs its best.
Frequently Asked Questions
Is gold a good investment in 2026?
Yes, gold is a good investment in 2026. Prices have pulled back from the new all-time high reached at the start of the year, with gold currently trading around US$4,500 per ounce. The outlook for gold remains strong, with forecasts predicting further gains to come, making now an attractive time to enter the gold market.
Is gold worth it for small investors?
Definitely, gold is still worth it for small investors. Despite a relatively high price per ounce, fractional options give investors a range of accessible entry points. BullionStar offers gold starting from s small as 1 gram in coins, bars, and through our Bullion Savings Program. Buying a small amount of gold steadily over time can help average out price movement, and build up a nest egg for the future.
Should I invest in gold or stocks
Many experienced investors choose to hold both gold and stocks, allowing them to benefit from owning both. Having a diversified portfolio helps reduce risk, and gold can offset periods of stock market turmoil. Stocks can offer regular dividends, but are riskier, while gold offers no yield it provides stability and acts as a safe haven during market downturns.
How much of my net worth should be in gold?
Most financial advisers recommend allocating 5–20% of their net worth in gold. Conservative investors generally opt for around 5-10%, moderate investors 10-15%, while those who believe gold will perform well might allocate up to 20% or beyond.
Is gold a safe investment?
Yes, gold is considered a safe investment. While it can experience short-term price volatility, gold’s long-term performance is historically strong, offering solid returns. As a physical commodity, it carries no counterparty risk and is independent of the traditional monetary and banking system.
Is gold a smart investment?
Gold is a smart investment, one that is made by millions of people around the world. Some of the world’s most famous investors (such as Ray Dalio or Harry Browne) recommend holding some gold. Central banks (the institutions in charge of the world’s money) collectively hold over 35,000 tonnes of gold in their national reserves.
Is gold a hedge against inflation?
Yes, gold is a hedge against inflation. It generally tracks or even outperforms inflation, holding its value while the purchasing power of cash steadily erodes. Over the past 50 years, gold has risen by approximately 3,500% while the US dollar has lost around 83% of its purchasing power.
Conclusion
Gold offers investors a tangible asset whose value can’t be inflated away by governments or central banks. With 3,500% gains over 50 years and a proven record as a safe haven through multiple crises, its performance speaks for itself. Gold is a good investment, straightforward to buy and built to last.
Ready to take the next step? Visit our guide on how to invest in gold or get in touch with our team on support@bullionstar.com who will be happy to help.
