Don't let volatile markets frighten you off Isas
22 Feb 2012
Gold is an increasingly popular investment. In times of trouble, the precious metal is seen as a safe haven - easily traded and always valuable.
We explain how to buy it and whether you should plump for precious metals in your portfolio.
Gold is a popular investment in times of turbulent world events. Unlike shares, deposits and other investments it is a tangible physical commodity and - unlike property - it's portable.
It will always have a value, as it's a finite resource and can't be manufactured no matter how hard people have tried over the centuries.
And it’s rare. Did you know all the gold already mined round the world would fit into a block 60ft square?
In recent years, the gold price has rocketed to record levels - it has shot up 600% since the turn of the century. The gold price is quoted in US dollars per troy ounce.
If you buy physical gold, then you have the expense of keeping it safe and there will be costs to sell it.
Gold also does not produce an income: There are no dividends paid or interest earned.
You can buy physical gold in the form of bars, ingots and coins.
Alternatively, you could buy Exchange Traded Commodities (ETCs) that are cheaper and easier to trade. They hold the actual gold for you.
You can also buy shares in companies that are involved in gold mining.
Finally, you can buy an investment fund which does the share picking for you.
