Investors in precious metals should be aware that gold can be an unstable asset class, according to one expert.

Mark Dampier, head of research for Hargreaves Lansdown, said that gold is likely to be worth in excess of $1,000 (£477) per ounce soon, although investors are advised to consider purchasing shares in the commodity.

However, investors ought to understand that gold can be a very volatile commodity , Mr Dampier stated, claiming that its can rise and fall in value by ten per cent in a single day.

You'd probably look at putting five per cent of a portfolio in gold, maybe. It depends on how aggressive you are, he commented.

According to the World Gold Council, production of the valuable metal is presently in decline.

It is estimated that 158,000 tonnes of gold has been mined throughout history, 65 per cent of which was mined since 1950.