Tuesday, May 02, 2006

Why invest in gold?

Safe haven

Completely free of credit risk, although it bears a market risk, gold has always been a secure refuge in unsettled times. Its ‘safe haven’ attributes attract wise investors.

Managing wealth

Gold has proved itself to be an effective way to manage wealth. For at least 200 years the price of gold has kept pace with inflation.

In 1999, Alan Greenspan, then Chairman of the Federal Reserve Board of the United States of America, said: "Gold still represents the ultimate form of payment in the world."

Effective performance

Another important reason to invest in gold is its consistent delivery within a portfolio of assets. Its performance tends to move independently of other investments and of key economic indicators. Even a small weighting of gold in an investment portfolio can help reduce overall risk.