Why Precious Metals Still Matter
In a world of digital money, economic uncertainty, and rising living costs, investors are turning back to something timeless: precious metals. Gold and silver have been trusted stores of value for thousands of years — long before banks or stock markets even existed. They’re physical, scarce, and universally recognised as valuable. When inflation eats away at savings and currencies fluctuate, gold remains steady. Owning it gives you a sense of security, independence, and tangible wealth you can literally hold in your hand. This guide breaks down why metals like gold and silver deserve a place in every modern portfolio — and how beginners can start investing safely and smartly.
Understanding Precious Metals
Precious metals generally refers to gold, silver, platinum, and palladium. Gold is prized for its rarity, beauty, and corrosion resistance. Silver is more affordable and widely used in electronics, solar panels, and medicine. Platinum and palladium are mainly used in the automotive industry and jewellery, but also have strong investment potential. These metals have intrinsic value — meaning their worth isn’t based on government promises or company performance. That’s what sets them apart from paper money or shares.
The Case for Investing in Gold
Gold has outlasted every currency and empire in history. It’s survived wars, recessions, and political turmoil — and still shines. It acts as a hedge against inflation, a safe haven asset, and a stable store of value. It’s tangible, private, and universally accepted — true wealth in its purest form.
Silver & Other Metals: The Underrated Players
Silver often gets overlooked, but it can be a powerful addition to your portfolio. It’s cheaper per ounce, widely used industrially, and can move more sharply in price than gold. Platinum and palladium are rarer but more specialised — ideal for later diversification once you’ve built a base in gold and silver.
Physical vs. Digital Investments
Physical metals (coins and bars) offer true ownership and no institutional risk but require secure storage. Digital options like ETFs are easier to buy and sell but mean you don’t own the metal itself. For most beginners, starting with physical metals is best — nothing compares to holding real gold or silver.
Coins vs. Bars: What’s Best for You?
Coins are more liquid and, in the UK, often exempt from Capital Gains Tax (CGT) if legal tender (like Gold Britannias or Sovereigns). From our experience, bars tend to have a higher premium, costing slightly more per gram when compared to coins. Bars can be ideal for larger investments (i.e. bars are available in various large sizes, 500g, 1kg etc.) whereas the most popular size for coins tends to be 1oz (31.1g).
So, what's the best option of the two? Should you opt for a coin or a bar? We recommend UK minted coins for our investors. These are CGT free (unlike bars) and tend to have lower premiums (in our experience).
How to Buy Safely
Always deal with trusted jewellers or bullion dealers. Check live prices, purity (999.9 for fine gold, 22ct for Sovereigns), and certifications. Avoid unknown online sellers. Verify authenticity through hallmarks, weight, and magnet tests — real gold isn’t magnetic.
At Sapphire Jewellers, customers are able to inspect items before they buy; feel what it is like to hold real wealth. We carry stock of various gold bars and coins and order on demand anything we do not stock in-store.
Prior to purchase, all customers are also demonstrated the authenticity of the bar or coin in question with our state-of-the-art testing equipment. This allows customers to leave with confidence in their investment. We have invested thousands into testing equipment to ensure the authenticity of all products we sell.
Storage Options
Store small holdings in a home safe or safety deposit box, and larger ones in professional vaults. Keep receipts, certificates, and records separately. Security and documentation are key.
For a larger portfolio, we don't recommend you keep your coins or bars in the house (regardless of whether it is kept in a safe or not). Safety deposit boxes / centres are our recommended storage option.
Timing the Market — When to Buy
Gold & silver are investments to be held for years, not a 'quick flip' to make profit. Many investors and jewellers use the term: 'Time in the market will always beat timing the market.' The best time to buy gold was years ago; the second-best time is now. Don’t try to time the market perfectly — instead, focus on consistent, gradual buying. Gold performs well in inflationary and uncertain economic environments — just like today.
How Much Should You Invest?
Most investors allocate 5–15% of their portfolio to metals. Start small — one Gold Sovereign or a few Silver Britannias — and build gradually using dollar-cost averaging. Think of gold as wealth insurance.
The Future of Precious Metals
Central banks are buying record levels of gold to strengthen reserves. Silver demand is growing from green technologies. As inflation and uncertainty persist, real assets like metals will continue to be sought after.
Final Thoughts — Real Wealth You Can Hold
In uncertain times, few things match the reassurance of holding real gold and silver. They preserve what you've worked for, protect your savings, and will often out perform the interest rates of most savings accounts. Precious metals aren't about fast gains - they're about long term security and timeless value.
Next Steps & How to Start Investing
If you are local to Coventry, we recommend you visit our city centre store for a chat on what your goals are with investing in precious metals. After, we can then advise you on how to get started and what products are suitable for you.
At Sapphire Jewellers, we pride ourselves upon transparency when discussing prices with our customers. We break down each individual price so you are able to see exactly how much you are paying for your investments. Alternatively, if you are not local to Coventry, we are still more than happy to chat. The best method to contact us via Instagram direct message: @sapphirejewellers_
Author: Ravi Parekh
Last updated: 22/10/2025
