Solomon Global: Why Are Investors Buying Gold in 2026?

At a very busy Master Investor Show on April 25th, 2026, one thing became very apparent: UK investors are increasingly focused on protecting and preserving their wealth in an uncertain economic environment.

Many attendees spoke to us about inflation concerns and the declining purchasing power of cash, but what stood out most was how many investors were actively looking at tax-efficient assets for their portfolios.

During our presentation at the event, Solomon Global’s managing director shared findings from nearly 14,000 Solomon Global website registrants over the past year, revealing exactly why investors are turning to physical gold.

Why investors are turning to physical gold: a Solomon Global survey

  • 44.63% said tax efficiency was their main reason for buying gold
  • 25.18 % cited annual growth potential
  • 24.35% said wealth protection
  • 5.84% identified inflation hedging as their primary motivation

While inflation remains an important concern, our research shows that today’s investors are taking a far more strategic approach to their investing.

They’re increasingly using physical precious metals to reduce tax exposure, preserve long-term purchasing power and diversify away from traditional assets.

As an award-winning supplier of physical gold, Solomon Global works with both first-time buyers and experienced investors through our bespoke service, competitive rates and consultative approach. Our goal is to make precious metals investing simple, secure and tailored to each client’s needs.

Why Tax Efficiency Is Driving Gold Demand

The biggest takeaway from our survey was that investors no longer view gold as just a safe-haven asset; tax efficiency is now the number one reason investors are buying or considering buying gold.

UK investors are becoming increasingly interested in physical gold products, which offer significant tax advantages. For example, British legal tender coins such as gold Britannias and gold Sovereigns are both:

  • VAT free
  • Exempt from Capital Gains Tax for UK residents

At a time when investors are facing rising tax burdens across the board, this becomes an increasingly attractive proposition.

Gold’s Strong Performance Has Also Caught UK Investors’ Attention

While tax efficiency came out on top, growth remains another major reason investors are looking to add gold to their portfolios, and there’s a very good reason for this.

A historic year, 2025 was impacted by highly volatile geopolitical and economic circumstances, all of which saw the gold spot rise 65% (GBP), driven by:

  • Central bank buying
  • Geopolitical instability
  • Interest rate uncertainty
  • Currency concerns
  • Safe-haven demand

Many investors we spoke to at the show weren’t necessarily looking to “time the market,” they were focused on long-term asset preservation and growth potential.

Preserving your money’s value over time

Gold as an inflation hedge may have ranked lower in our survey, but it should certainly be a consideration for investors. Cash held in savings accounts can lose purchasing power over time when inflation outpaces interest rates, meaning the same money buys less as everyday costs rise. According to The Investment Association (IA), £10,000 put inside a Cash ISA 10 years ago would now be worth roughly £8,400 in real terms today.

Inflation is very much in the news again. Recent geopolitical tensions, including the Iran-US conflict, which has seen Brent crude rise almost 60% in two months (directly impacting the price at the pump), have also contributed to UK inflation, which has climbed to 3.3% in the 12 months to March 2026.

In contrast, over the past 25 years, gold has delivered average annual growth of approximately 12.1% in GBP, reinforcing its reputation as a long-term store of value and a potential hedge against inflation.

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