November 7, 2009
Gold has become an essential part of a sensible investment portfolio, and many investors buy gold for their investment,being seen as a safe haven while stock markets fluctuate. It's also become a hedge against currency uncertainty and a standard recommendation for long-term planning, such as pension plans, because of its perceived secure nature.With predictions that the yellow metal could soar again to as much as $2,500 (£1,650) an ounce (currently $910) it can look attractive. And fans point to the tremendous returns it has offered in recent years. Its price has climbed 140 per cent over the last five years, although it is only up 3.2 per cent over the past 12 months.However, the price of gold can move significantly and therefore short-term investors can still make a profit - or more importantly - a loss from investing in gold and should not treat it as the safe haven it is often described.