Westbrooke Associates Explores Why Gold Is Back in Focus for Investors

In an investment landscape shaped by persistent inflation, geopolitical uncertainty and market volatility, gold is once again attracting serious attention from investors seeking stability and long-term value.

Over the past decade, gold has risen by more than 300%, driven by a combination of currency weakness, central bank demand and repeated global shocks. 

In 2025, many of the conditions that historically support gold prices remain firmly in place, prompting renewed interest in gold-backed investment strategies. 

Westbrooke Associates Reviews Gold’s Role Within Diversified Portfolios

Although inflation has eased from recent highs, it remains elevated compared with long-term averages across the UK, Europe and the US. At the same time, higher interest rates have increased pressure on borrowers, dampened property market activity and introduced volatility into equity markets.

Gold has long been viewed as a hedge in these conditions. Unlike government-issued currencies such as pounds or dollars, gold cannot be devalued by monetary policy and has historically preserved purchasing power during periods of prolonged economic stress. 

As currencies fluctuate and real returns on cash remain constrained, investors are increasingly reassessing gold’s role within diversified portfolios.

Demand Reaches Historic Levels

One of the most significant drivers of gold’s recent performance has been central bank buying. Over the past several years, central banks globally have increased gold reserves at a pace not seen since the 1970s, seeking to reduce reliance on the US dollar and strengthen balance sheets. 

While this trend is global, its impact is felt directly by UK investors. Gold is priced internationally, meaning large-scale institutional demand provides structural support to prices regardless of where the buying originates. 

This has reinforced gold’s role as a strategic reserve asset rather than a short-term, speculative trade.

Market Volatility is Reshaping Investor Behaviour

Traditional asset classes have faced mounting challenges. Property markets across the UK and Europe have become more expensive to enter, slower to exit and increasingly burdened by regulatory and tax pressures. 

Equity markets, meanwhile, continue to react sharply to inflation data, interest rate decisions and geopolitical developments.

Against this backdrop, investors are exploring alternative assets that offer lower correlation to equities and bonds. Gold’s liquidity, global pricing and long-established role as a store of value make it a natural candidate in times of uncertainty.

Forecasts for the Remainder of the Decade Remain Robust

Gold prices reached record highs during 2024 and early 2025, with analysts citing strong demand, constrained supply and ongoing geopolitical risk as key contributors. 

Forecasts for the remainder of the decade remain robust, with many analysts projecting continued strength as governments manage high debt levels and structural inflation pressures persist. 

While past performance is not a guarantee of future returns, gold’s historical resilience continues to underpin its appeal for long-term investors.

Accessing Gold Without Physical Ownership

For many investors, the challenge has not been belief in gold’s value, but how best to access it efficiently. Physical ownership brings storage, insurance and liquidity considerations, while public market instruments can introduce additional volatility.

As a result, professionally managed, gold-backed investment structures have gained prominence. These approaches aim to capture the benefits of gold exposure while removing the operational complexity traditionally associated with the asset.

Westbrooke Associates and Gold-Backed Investment Strategies

Westbrooke Associates continues to monitor global market conditions closely, with a focus on asset-backed and alternative investment opportunities that align with current economic realities.

As investor demand for defensive, income-generating assets grows, gold-backed strategies are increasingly being considered alongside other alternatives such as specialist property, structured finance and private market investments.

Gold’s renewed relevance reflects more than short-term price movements. It signals a broader shift in how investors are thinking about risk, preservation of capital and long-term resilience in an uncertain world.

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