Gold Prices Soar: Should You Invest Now?
The price of gold has reached a three-month high at $4,601 (£3,373) an ounce, sparking interest in investing. According to Thomas Kaplan, a leading investor in gold and silver, the price could increase tenfold in the coming weeks.
Kaplan's prediction is based on concern about the US economy and a weakened dollar, causing investors to consider precious metals as a safe investment. One of the simplest ways to invest in gold is through Exchange Traded Commodities (ETCs), such as the iShares Physical Gold ETC, which tracks the spot price of gold.
Another option is to buy gold bullion from reputable dealers like the Royal Mint or BullionVault, but this requires a significant upfront investment. Investing in a ready-made fund, such as the Ninety One Global Gold Fund, spreads risk and allows for smaller investments. However, these funds can be volatile if the gold price falls.
Investor Kate Seow made £650 after one month by investing £5,000 in the iShares Physical Gold ETC. She plans to continue investing regularly through a direct debit. While investing in gold can be a good way to offset business costs or diversify a portfolio, it's essential to understand the risks involved and not try to time the market.