Investor interest in gold has accelerated again, with the metal's dip since February attracting bargain hunters
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| Good as gold: But is now a buying opportunity? |
After momentarily crossing the $1,000 an ounce mark in February, gold has dropped back to $897.
And since February, sterling has strengthened against gold which is priced in US dollars.
Adrian Ash, of BullionVault says: ''Right now investors are being offered gold at a currency discount of some 13% since February's high.
'We have been phenomenally busy over the past few days. But in our experience, investors tend to buy in a falling market anyway. If savers have been considering buying into gold, right now could be a good opportunity.'
How to invest in gold
Downward pressure was put on the gold price this week when the news emerged at the G20, that the International Monetary Fund was to accelerate its sales of gold. But many investors are seeing this as good buying opportunity.
Gold, which is traditionally viewed as the ultimate safe haven investment, has been in the headlines over the past year.
Since the start of 2008, as the financial crisis has progressed, the nominal price of gold has exceeded $1,000 on more than one occasion.
However, it should be noted that in real terms gold remains well below its record value says Tom Elliott, at fund manager, J.P.Morgan Asset Management.
Graham Spooner, at stockbrokers The Share Centre, urges caution, he says: 'We have experienced a rise in calls recently from customers keen to invest in gold.
'We have explained that this market is very volatile and given the recent good run there is every chance the market may experience some periods of weakness.'
Concerned savers have flocked to the asset class, to invest either directly in bullion itself, or via funds, since the credit crunch took hold. It has always been viewed as the ultimate safe haven and a valued international reserve currency.
Source : http://www.thisismoney.co.uk
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