Gold and silver have long been viewed as reliable safe-haven assets, and in September 2025 that reputation is firmly back in the spotlight. The U.S. Federal Reserve has signalled further interest rate cuts, global markets remain unsettled, and investors around the world are looking for protection against volatility. As gold hovers near record levels and silver enjoys its strongest rally in years, UK buyers are asking whether now is the right time to increase their exposure to physical bullion.
The Impact of Fed Rate Cuts on Precious Metals
When the U.S. Federal Reserve cuts rates, it reduces the yield investors can earn on cash and bonds. This makes non-yielding assets like gold and silver more attractive by comparison. Lower rates also tend to weaken the U.S. dollar, which often supports higher gold and silver prices in other currencies. For UK investors, this means bullion priced in sterling can become more expensive if the pound is weak, but the underlying trend remains supportive of higher precious metal demand.
Global Uncertainty Fuelling Safe-Haven Buying
Beyond monetary policy, broader uncertainty is pushing demand for tangible assets. Geopolitical tensions, trade disputes, and fiscal concerns in major economies are weighing heavily on investor sentiment. In the UK, questions over government borrowing costs and persistent inflation are adding to the sense of unease. Against this backdrop, gold and silver are once again being recognised as assets that can provide security when other investments look fragile.
Silver’s Dual Role: Investment and Industry
Silver’s recent surge is particularly noteworthy. While gold has hit record highs, silver has outpaced it in percentage terms thanks to both investment and industrial demand. Silver plays a key role in sectors such as clean energy and electronics, which adds another layer of support for prices. For UK investors, this makes silver an attractive complement to gold, offering both diversification and the potential for stronger gains during bullish periods.
What This Means for UK Buyers
For investors considering their next steps, the current environment highlights a few important points:
- Physical over paper: Owning physical bullion provides direct control and avoids counterparty risk.
- Tax advantages: UK legal tender coins, such as Gold Britannias, Silver Britannias, and Sovereigns, remain exempt from Capital Gains Tax.
- Liquidity: Recognised coins and bars are easy to sell when needed, even during volatile times.
- Portfolio balance: Allocating 5–15% of a portfolio to gold and silver can provide stability without sacrificing growth elsewhere.
Timing and Strategy
Prices are high, and volatility can make timing difficult. One approach is to build a position gradually, buying in stages to smooth out price fluctuations. Watching for short-term pullbacks can also help secure better entry points. For silver, tubes of Britannia coins or smaller denomination bars can be a practical way to build holdings without large upfront costs.
Conclusion
With the Federal Reserve easing policy and global uncertainty on the rise, gold and silver are seeing renewed safe-haven demand. For UK investors, physical bullion offers security, liquidity, and long-term wealth preservation at a time when traditional assets face pressure. By focusing on tax-efficient products and adopting a balanced strategy, you can navigate this environment with greater confidence.
Call to Action: Ready to add the security of gold or silver to your portfolio? Contact Solomon Global today or download our free investment guide to get started.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. We recommend seeking independent legal, tax, or financial advice before making investment decisions.
