Few Commodities Offer the Security and Allure of Gold

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"Investors have been in pure panic, they think the world is ending," Nicholas Brooks, head of strategy at ETF Securities, told Reuters this week. "When people get into that sort of mentality, one of the first places they go to is gold."

...Gold is surprisingly accessible for the average private investor. Most of us know that the stock market is open for investment to anyone who has the means and the will to buy shares, but few people imagine that gold could be a viable investment choice for the person on the street.

Historically, relatively few of us have chosen to put our money into gold, perhaps because the price has been very poor for a very long time. Unlike throwing your money into emerging markets, or even the buy-to-let housing market, it appeared there was no fast buck to be made through the precious metal. However, the banking crisis has set the price of gold fluctuating to a much greater degree, creating a greater potential for growth and, on the flip side, risk.

As with any other investment, gold can go down as well as up in value; having peaked at $1,030.80 an ounce in March, it is now trading close to the $820 mark. However, while even the biggest banks can go bust, not even ambitious City traders can destroy gold.

"Investors have been in pure panic, they think the world is ending," Nicholas Brooks, head of strategy at ETF Securities, told Reuters this week. "When people get into that sort of mentality, one of the first places they go to is gold."

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