Approaches to investing in precious metals are driven by cultural, economic, and market factors.
Caroline Savage, Managing Director at South West-based Bleyer Bullion provides a glimpse into the forces acting on the precious metals trade.
Bleyer considers behaviours displayed by its customers, living both in the UK and overseas. Investors in countries like China and India, often have a deep cultural affinity for precious metals like gold and silver. These metals are traditionally viewed as symbols of wealth, status, and security. For example, in India, gold plays a pivotal role in weddings, festivals, and religious ceremonies, which fosters consistent demand. In China, gold is not only a status symbol but also considered a reliable hedge against inflation and economic uncertainty. Asian investors are more likely to view precious metals as a long-term store of value, often purchasing physical assets such as gold bars, coins, or jewellery over other options.
Asian investors prioritize tradition, wealth preservation, and inflation protection. UK investors, however, are more influenced by market trends, tax advantages, portfolio diversification, and global economic events. These contrasting motivations shape how each group engages with precious metals markets.
Over 15 years ago Bleyer set out to demystify bullion ownership in the UK. Since then bullion ownership has become more mainstream. Many savvy investors now realize the value of physical metals and opt for CGT (Capital Gains Tax) exempt UK bullion coins, as an attractive alternative to ETFs (Exchange Traded Funds) and mining stocks.