The price of Gold has reached a new high!

Gold has traditionally been seen as a safe haven for canny investors to ward off the problems of inflation.

On the 3rd of May in 2011 Gold reached a spike in value that had been growing since the previous tide mark in March 2008.

This growth over three years represents an increase of just over 44%, as investors feared for currencies during prolonged periods of quantitative easing for many currencies such as Sterling and the Dollar.

Gold production has long out grown the actual demand for gold as a material, with supplies of gold for for use in jewellery or electronic manufacturing representing only 80% of actual yearly production. The remaining 20% is converted into gold investment products and funds. This explains why the price of gold is now mainly influenced by sentiment which and further illuminates the climbing gold price during 2010 and 2011.

The gold price can be tracked with fund managers or commodities brokers who offer products or facilities which are linked to gold. This may involve actually owning a quantity of Gold which will be stored in a vault somewhere, the investor retaining certification of their investment indicating just how much gold they have. Another option is to invest in a fund which is tied to the success, or failure, of gold and offers a performance based return on your investment. This option may protect from inflation eroding currency deposits but it comes without the safety of actually owning gold.

Whichever option you do choose you should be careful to pay close attention to the gold price per gram in pounds as many feel that gold has also suffered from an inflationary bubble and the record high prices may be coming to an end.

United Kingdom - Excite Network Copyright ©1995 - 2018