In an era marked by currency fluctuations and rising inflation, gold has emerged as a symbol of stability and value. Currently trading around $2,400 (£1,829.60) per ounce—after hitting a record high in July—the precious metal has surged approximately 16% this year. As global instability drives investors toward safer assets, gold has become a go-to for those seeking financial security.
One such investor is Lally Walford, who made a decisive move two years ago by liquidating her savings and investing exclusively in gold.
“I’ve never had faith in the financial system,” Walford explains. “I’ve always preferred tangible assets. Keeping my money in a bank, where it earned negligible interest, felt unsafe. The stock market also never appealed to me.”
A 50-year-old single mother from Edinburgh with three teenage children, Walford manages an interior design business with an unpredictable income stream. Her aversion to risk and frustration with meager returns in her savings account led her to seek an alternative investment.
Walford opted for a TallyMoney account, which functions like a conventional current account but is entirely based on gold. Customers deposit funds into their account, which then purchases physical gold equivalent to the deposit amount, reflecting global spot prices.
Account balances are displayed in “tallies,” where each tally represents one milligram of physical gold. Users can save, spend via a debit card, or withdraw cash, with the gold securely stored in a Swiss vault.
“I educated myself on how the banking system operates,” Walford says. “It’s debt-based and fundamentally flawed. I wanted to invest in something that offered a decent return.”
She began with a modest investment in TallyMoney, gradually increasing her stake as she gained confidence.
“I believe this is the safest way to grow my money,” she adds. “Despite the inherent risks, gold has been rising and I expect that trend to continue.”
According to the London Bullion Market Association, analysts predict that gold prices could average $2,560 in the latter half of the year. However, gold’s volatility is notable; for instance, the price dropped 1% last month during a market sell-off.
Historical data underscores gold’s unpredictable nature: in 2013, gold prices plummeted 30%, mirroring the gains seen in US equities that same year. A significant crash occurred in mid-April of that year, with a single-day drop exceeding 12%.
Financial experts stress the importance of a diversified investment portfolio. Sheridan Admans from investment platform Tillit advises keeping exposure to precious metals within 5% to 10% of one’s portfolio.
George Sweeney of comparison site Finder emphasizes that while gold can be a valuable diversification tool, it should not constitute a portfolio’s sole focus.
“Gold can be a useful addition to most portfolios,” Sweeney explains. “It serves best as part of a broader strategy. Its primary advantage is maintaining or increasing value when other assets, like cash or stocks, decline, making it an effective hedge against inflation.”
As investors navigate the current economic landscape, gold continues to offer a beacon of stability amid uncertainty, but it should be integrated thoughtfully within a well-rounded investment strategy.
