Gold prices have surged to record highs of around £3,700 per ounce because of escalating trade tensions, ongoing geopolitical instability and a strong wave of central bank buying. With ‘safe-haven’ demand intensifying, many savers will be asking whether gold deserves a place in their pension.
The precious metal has long been viewed as insurance against uncertainty – a potential hedge against inflation, market volatility and currency fluctuation. However, while the headlines might look enticing, gold remains a specialist investment, and the rules around holding it inside a pension can be more complex than many expect.
Before adding extra sparkle to your retirement planning, there are some options and risks to consider – and it’s worth being aware that accessing gold within a pension often requires the involvement of a financial adviser.
Mike Ambery, Retirement Savings Director at Standard Life, said: “The scale of gold’s recent surge is certainly getting people’s attention. When you see prices breaking fresh all-time highs, it’s natural for savers to wonder whether they should be doing something differently with their pension.
“It’s important to recognise gold carries its own investment considerations, despite its reputation for safety. It can play a role for some people, particularly when markets feel uncertain, but it’s important to understand both the potential benefits and limitations before making any decisions. Unlike some other precious metals, gold isn’t widely used in industry, so it really is an asset whose value is based on its long history as a store of value.
“What really matters is how gold fits into your wider retirement plan. For most people, it’s about balance and moderation rather than making big changes based on recent performance. Thinking carefully about costs, risk, and long-term goals is essential before adding any precious metals into your pension mix.”
Mike answers some key questions about holding Gold in your pension:
How can you get hold of gold in your pension?
“There are essentially two ways to hold gold in a pension, and each comes with its own considerations. Physical gold is usually only available through a Self-Invested Personal Pension (SIPP) and must meet strict HMRC standards. It has to be stored in approved vaults, which adds cost and complexity. Gold ETCs (Exchange Traded Commodity) track the gold price and are available on many mainstream pension platforms, though not every scheme allows them. Both give exposure to gold, but the fees, risks and practicalities vary, so it’s important savers understand the differences before deciding which route - if any - is right for them.”
Who is gold suitable for?
“Gold isn’t for everyone. It doesn’t generate any income, so your returns rely entirely on the price rising – and that means it can fall behind when markets are strong or interest rates are higher. It can add diversification for some people alongside long-term growth assets like equities and moderation really is key here. For most savers, gold is best viewed as a supporting part of a wider pension strategy, rather than a core holding.”
I’m interested… what else do I need to be aware of?
“If gold has caught your attention, there are some practical points to keep in mind. First, check what your pension actually allows. Not every scheme offers gold exposure, and physical gold is usually limited to SIPPs with specific rules around storage and custody. Many schemes and providers might also require you to have a financial adviser before proceeding.
“Also, be aware of costs. Whether it’s vaulting fees for physical gold or ongoing charges for gold ETCs, these can eat into returns over time.”
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