Gold as a strategic asset

Gold as a strategic investment tool is not a recent trend. It has been a trusted means of value storage for centuries. When the economy wavers, gold often stands firm—not because it rises quickly, but because it retains its value.

With gold as a strategic asset, you're not dependent on banks or governments, but instead hold a tangible possession in your hands. By adding gold to your portfolio in a smart way, you build toward financial peace of mind.

Why central banks hold gold

Central banks hold gold as part of their currency reserves due to the precious metal's unique properties. On average, about 20% of central banks' reserves consist of gold. This metal has global value, is not tied to the policies of any one country, and offers stability in uncertain times.

By including gold in their reserves, central banks diversify risk and protect themselves against currency devaluation. Gold also serves as a strategic hedge in times of economic stress or geopolitical tension.

The role of gold in geopolitical tensions

Interest in gold rises during geopolitical tensions. Conflicts like the war in Ukraine or recent trade disputes between the U.S. and other global powers cause volatility in financial markets. In such times, investors often turn to gold because it retains value regardless of political developments.

Gold demand also increases when countries want to safeguard their reserves. Historically, gold remains stable during such events. We've seen this from the Cold War to more recent global crises.

Gold versus other investments

Gold is fundamentally different from other types of investments. It doesn't follow stock market trends like equities or cryptocurrencies. It’s less sensitive to interest rate changes than bonds. And unlike real estate, it doesn’t require upkeep. Precious metals last for decades without significantly losing value.

In times of inflation, economic doubt, or geopolitical unrest, stability is exactly what investors are looking for—not a paper promise, but a certainty you can hold.

How to include gold in your investment strategy

When adding gold to your investment portfolio, you have more options than you might think. At The Silver Mountain, you can choose physical gold in the form of gold bars or well-known coins like the Maple Leaf or Krugerrand. These unique coins can be stored securely at home or placed in professional storage, such as through our partner Edelmetaalbeheer Nederland. They offer high-security facilities in Rotterdam and Zurich, Switzerland.

No matter which form you choose, gold calls for a thoughtful approach. Smart investing is about diversification—consider a mix of gold bars and gold coins. This keeps you flexible when markets move. Want to find out what fits your situation best? The experts at The Silver Mountain are here to help. That’s reassuring.

Outlook: will gold remain strategically important?

Gold is expected to remain relevant in an uncertain world. Central banks across the globe, from China to Poland, are buying large quantities of gold to reduce their dependence on the U.S. dollar.

Meanwhile, trust in digital and paper-based assets is eroding due to inflation, high national debt, and geopolitical tensions. In such circumstances, investors turn to gold as a solid hedge: tangible, stable in value, and independent of banks or governments.

Do you want to give gold a place in your investment strategy? Get advice from the specialists at The Silver Mountain and discover what fits your needs. Contact us today.

Disclaimer: The Silver Mountain does not provide investment advice and this article should not be considered as such. Past performance is no guarantee of future results.