The Pure Gold Company
The Pure Gold Company are referenced as the go to UK gold dealer in a five-minute investing guide by Harvey Jones of the Daily Mail.
By Harvey Jones
GOLD has been the top performing investment since the millennium, easily outshining major rivals such as shares, cash and property.
The precious metal has always had a special place in the hearts of investors and lately it has put in a glittering performance.
The gold price is up another 26 per cent over the past 12 months, which is an incredible 2600 times the return of NatWest’s cash Isa that pays just 0.01 per cent.
This kind of return will inevitably tempt hard-pressed savers, but gold does not always shine, so is now a safe time to buy it?
Good as Gold
Gold is traditionally seen as a safe haven in times of trouble and it has certainly been a terrific berth for your money over the last 16 years.
In that time, gold has delivered a total return of a whopping 465 per cent , according to figures from BullionVault.com.
House prices may have boomed over the same period, but they trail with a total return of 165 per cent, according to the Halifax house price index.
The total return from stocks and shares as measured by the FTSE All Share, including dividends reinvested, is a relatively lowly 96 per cent, while cash has returned just 55 per cent.
Past performance is no guarantee of future returns, so this does not mean it will dazzle in future.
However, Adrian Ash, head of research at BullionVault, says: “With stock markets struggling and interest rates collapsing since the turn of the millennium, gold has been the best performing asset by far.”
WORTH A MINT
Mining for gold takes time and effort, which makes it attractive at a time when central bankers are devaluing currencies through rampant money printing, or quantitative easing.
Yet it is far from a one-way bet, Ash adds. “The gold price can be highly volatile, it fell 25 per cent in 2013, for example.”
None of this has deterred investors, many of whom use gold to offset risks elsewhere in their portfolio.
There has been a rush of private investors into gold since the Bank of England cut interest rates last month.
Do not be dazzled by recent growth, gold could quickly lose some of its lustre if the global economy finally recovers.