Brits continue to flock to alternative investments

As they look to diversify their portfolio, beat inflation and generate wealth in the long-term

Close up of British bank notes, £20 and £50


Some 58% of UK investors currently hold at least one alternative investment in their portfolio, a survey by Royal Mint has revealed.

It shows that there is a growing appetite for alternative investments among Brits with investors planning to increase their asset allocation by 11%.

With the motivation behind this being UK inflation outstripping high-street bank savings rates according to two thirds of respondents.

Due to the cost-of-living crisis, 68% of investors said they are on the hunt for better returns from their investments, as 38% who haven’t already consider investing in alternatives.

This is due to the belief that these types of investments will offer better returns in the long term than traditional stocks and shares.

The data showed that 21% of investors are set to hold gold in their portfolio by 2024, with The Royal Mint reporting a 26% uplift year-on-year in the volume of gold investments during 2022.

‘Pendulum has swung’

Andrew Dickey, director of precious metals at The Royal Mint, said: “As high street savings rates and returns on the stock market remain low the pendulum has swung towards investments with the potential to offer better returns.

“It is clear from the data that investors are becoming more pragmatic about their portfolios and turning towards what are traditionally viewed as ‘alternative investments’ in order to boost their portfolio during this period.

“At The Royal Mint, we’ve seen an uplift in gold and silver investments in the first half of the year as investors turn to alternative investments as a means to diversify their portfolio, beat inflation, and generate wealth in the long-term.

“Whilst the data shows that bitcoin is set to drop in its investment appeal over the next year, more are investing in gold and precious metals in order to benefit from the investment’s ‘safe haven’ status. It is clear that precious metals are becoming a more mainstream investment choice for UK investors, having delivered positive returns for investors in recent years.”

This story originated on our sister title, International Adviser.


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