In Gold we Trust.
Public trust in the UK government is at a seven-year low, according to the annual Edelman Trust Barometer, mostly provoked by economic pessimism. This growing scepticism is a key reason Ian Peacock upped his gold holdings from 10% to 50% of his investment portfolio. He’s not taking any chances.
Wakeup call
Ian started buying gold in 2020.
“I woke up!” he says. It started with questions and uncertainties about whether the UK government was telling the truth about the Covid-19 pandemic. “Once I saw the money being wasted by the government under false pretences, on things like the Covid App, PPE, PPE Contracts etc, I started to wonder whether the financial system was equally as murky, and maybe we weren’t being told the truth here either.”
“Once I started to research and understand the system, I realised that we are in a bubble that has to burst. The governments are broke and inflation was going to get very bad. I invested in gold as it is a hedge to inflation, I don’t expect to make a profit on it, but it will protect my wealth against inflation which is currently stealing a lot of my money.”
Consultative approach
The initial impetus for buying gold was how the government handled the Covid pandemic. Ian chose Arabian Pure Gold because of its consultative approach which gave him the information he needed to make an informed decision about his gold investments. More recently Ian has continued to add to his gold portfolio because he has concerns about the billions of pounds being sent to Ukraine. He believes government spending is out of control.
“Either way it is a lose lose situation. We are in a bubble that has to burst or be continually propped up by the government. If the bubble bursts you lose your money. But if the government keeps propping up the markets by printing money, then inflation will make sure you lose your money as well.”
Josh Saul, CEO of Arabian Pure Gold said: “There are an increasing number of clients who want to protect themselves from a financial system that they see as flawed. As the economic situation worsens, the sense of dissatisfaction with the government grows and they turn to physical gold to shield themselves from both the inflationary environment and the financial institutions that they no longer trust.”
Ian, an engineer in his 40s from Cambridgeshire, still owns some stocks and shares from before the pandemic but hasn’t bought any more since then. He keeps up with current events, monitoring prices and financial news every week. He is using his savings to make regular gold purchases.
“The world we live in now is only going to get worse in the short to medium term. Fiat currency in all countries is getting less and less in terms of what it can buy you and conversely the value of gold will continue to rise.”
Today Ian’s gold holdings have grown to 50% of his portfolio, and he has sold some stocks from his SIPP (Self Invested Personal Pension) to invest in physical gold in the same vehicle. He’s making sure he has a safe haven when the bubble bursts.
