The balance and what it buys
The number in a savings account can stay the same while the things you buy get dearer. Inflation chips away at buying power whenever the interest you earn, after tax, fails to keep up with rising prices.
Cash still has a job
Easy-access savings cover everyday spending and surprise bills. Gold has to be sold before it can pay for anything, and a sale can involve a spread, costs or a wait. Putting money you need soon into gold adds risk you can avoid.
A different kind of exposure
Physical gold is not a company promising to repay a debt, and its price is driven differently from cash, shares or bonds. Buying, looking after and selling it still involves other people, though. Its price can fall, even when inflation is high, and it pays no income.
Look at the period, not the headline
Gold priced in pounds reflects both the metal price and currency moves. A chart of the past leaves out premiums, resale spreads and other costs. Try different start and end dates, including patches when the price fell, instead of treating a good run as a forecast.
