With almost eight in ten UK adults (79%) saying their cost of living continues to rise month by month, according to the latest Office for National Statistics (ONS) data, more people are looking for ways to protect their savings and investments from inflation and economic uncertainty.
At the same time, demand for gold has surged. According to the World Gold Council, total global gold demand reached 1,231 tonnes in the first quarter of 2026, while the value of demand jumped 74% year-on-year to a record US$193 billion.
Demand for gold bars and coins rose 42%, making it the second-highest quarter on record.
As more investors turn to gold, one question keeps coming up. How much should you actually own? According to Matthew Jones, Precious Metals Analyst and Co-Founder of Britannia Bullion, there is no one-size-fits-all answer, but for many people, a sensible allocation is typically between 5% and 15% of their overall wealth.
“One of the most common questions we hear is ‘How much gold should I own?’ There isn’t a magic percentage that works for everyone because every investor’s circumstances, objectives and attitude to risk are different. What there is, however, is a sensible framework that can help people determine what is right for them.”
Unlike shares, property or pensions, gold does not generate income. Its role is different.
“Gold’s primary purpose isn’t growth. It’s preservation. Gold sits outside the traditional financial system. It can help diversify wealth away from currencies, banks, debt markets and financial promises, while providing a degree of protection during periods of inflation, market volatility or geopolitical uncertainty,” says Jones.
Before deciding how much gold to own, Jones says investors should first consider the role they want gold to play, and think about what 5% to 15% looks like in practice.
For someone with investments and savings worth £100,000, a 5% allocation would mean holding around £5,000 in gold. At this level, gold acts as a form of financial insurance without changing the overall make-up of a portfolio greatly. For someone with £250,000 of investments and savings, a 10% allocation would equate to around £25,000 in gold.
Jones says many investors view a 10% allocation as a measured approach, providing exposure to gold while maintaining investments in growth assets such as shares and property, as well as building a store of value outside the financial system.
At 15%, gold becomes a more substantial component of a portfolio and may appeal to investors who are approaching retirement, have already built up wealth, or are particularly focused on preserving capital.
However, Jones warns that investors should be cautious about allocating significantly more than this without a clear reason. Gold can play an important role within a diversified portfolio, but it shouldn’t be viewed as a cure-all. Investors still need exposure to a range of different assets and investment types.
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