Art, Gold, Crypto, Stocks or Property? Why the property market remains a first choice

In a market increasingly defined by volatility and shifting sentiment, investors are re-evaluating their asset allocations. From fine art and gold to cryptocurrency and equities, each class presents unique opportunities and risks. Yet through every cycle, UK property has remained a resilient and enduring cornerstone of long-term wealth strategies.

The performance foundation: why property comes first

UK property has long been considered a foundational asset, offering capital appreciation, stable cash flow, and low volatility. Despite a modest -5.3% correction in 2023 due to interest rate pressures, property prices remained approximately 20% above five-year averages (Alliance Investments, 2023). By the end of 2023, the market had stabilised, with a modest 0.6% year-on-year increase (Alliance Investments, 2023). Savills (2024) forecasts a cumulative +6% growth in UK property prices by 2027, underscoring long-term confidence in the sector.

Rental yields have surged alongside constrained housing supply. The UK saw average gross yields rise to 7.0% by mid-2025 (Global Property Guide, 2025), with new lease rents increasing 10.5% in 2023 alone (Bank of England, 2024). These dynamics not only support consistent income but make UK property one of the few asset classes to offer reliable dual returns.

Moreover, property exhibits significantly lower volatility than equities or crypto, making it especially attractive to risk-conscious investors. A recent CBRE survey reported that 98% of active UK property investors plan to maintain or increase allocations in 2025 (CBRE, 2025).

Art: value, emotion, and illiquidity

Fine art is a passion asset with long-term investment potential. The Artprice100© index, tracking blue-chip artists, returned approximately 10% annually since 2000 (Artprice, 2024). During 2021–22, contemporary art prices grew by 17% (Bank of America, 2023), making it a hedge during inflationary periods.

Yet art lacks liquidity and income generation. Pieces are illiquid and typically incur high transaction fees. For instance, a work that sold for £1.2 million in 2022 resold for just £353,000 in 2024, a 71% loss (Masterworks, 2024). However, blue-chip art remains more resilient, with the Artprice100 index still returning +1.5% during a cooler 2023 market (Artprice, 2024).

Art's low correlation to financial markets (Citibank, 2022) makes it a valuable diversifier, though it is best used to complement more stable, income-generating assets like property.

Gold: A classic safe haven

Gold remains a trusted hedge against inflation and economic uncertainty. It returned +25% in 2022, +12% in 2023, and surged another 26% in the first half of 2025 (World Gold Council, 2025). During past crises, such as 2008 and the pandemic, gold outperformed equities (WGC, 2023).

Despite lacking yield, gold is widely accessible and provides reliable downside protection. Its low correlation with stocks (-0.12) makes it a stabilising asset in diversified portfolios (WGC, 2023). Central banks purchased 1,136 tonnes of gold in 2022—a 55-year high—illustrating institutional confidence in its role (WGC, 2023).

Cryptocurrency: High reward, high risk

Cryptocurrencies, particularly Bitcoin, offer dramatic upside but extreme volatility. After plunging by 65% in 2022, Bitcoin rebounded nearly 100% in 2023 (Nasdaq, 2024). Annualised volatility of ~47% far exceeds other asset classes (iShares, 2024).

Crypto remains speculative, with price action driven by sentiment and adoption rather than cash flows. While staking can produce yield, it comes with substantial counterparty risk. Notably, the collapse of FTX in 2022 exemplified the fragility of decentralised finance systems.

Despite this, adoption continues to rise, particularly among younger investors and HNWIs seeking high-growth exposure (State Street, 2024). Yet, crypto is best viewed as a satellite allocation, not a foundation.

Stocks: Long-Term growth with volatility

Equities remain the growth engine of many portfolios, offering ~10% historical annual returns (Morningstar, 2024). After a difficult -18% year in 2022, stocks rebounded strongly in 2023 (+26%) and 2024 (+23%) (Morningstar, 2024).

Stocks also offer dividend income (1.5–4%) and are among the most liquid and accessible investments. However, they carry medium to high volatility and can experience deep drawdowns during crises.

For long-term investors, stocks are valuable performance drivers. But their cyclical nature makes them more suitable as a complement to property, not a replacement.

The Role of property in a Multi-Asset Portfolio

Each asset class has a role. Art offers passion-led diversification. Gold protects during volatility. Crypto introduces high-growth potential. Equities drive wealth over time. But property remains the bedrock.

• It combines income, growth, and low correlation.

• It is less volatile than equities and far more stable than crypto.

• It is tangible and generational in nature.

We believe property offers the strongest base on which to layer other investments. It is where capital can rest, grow, and perform across cycles. Investors seeking enduring value start with a strong foundation. And in our view, that foundation is property.

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References

Alliance Investments. (2023). UK Housing Market: Post-Correction Resilience. Artprice. (2024). Art Market Report: Stability Through Adjustment. Bank of America. (2023). Art as an Inflation Hedge. Bank of England. (2024). Quarterly Bulletin: Buy-to-Let Sector Review. CBRE. (2025). UK Real Estate Outlook 2025. Citibank. (2022). Contemporary Art: Asset Correlations and Strategy. Global Property Guide. (2025). UK Rental Yields Q2 2025. iShares. (2024). Bitcoin Volatility Metrics. Masterworks. (2024). Auction Market Review: Volatility in Modern Art. Morningstar. (2024). Global Market Performance Review. Nasdaq. (2024). State of Cryptocurrency Markets. Savills. (2024). UK Residential Property Forecasts 2024–2027. State Street. (2024). Crypto vs. Gold: HNW Investor Sentiment Study. World Gold Council. (2023). Gold as a Strategic Asset in Portfolios. World Gold Council. (2025). Mid-Year Outlook: Gold Reaches All-Time Highs.