October 8, 2008
Investors worried by the state of the markets have started a gold rush, buying into bullion stocks in unprecedented numbers, analysts revealed yesterday.
- A d v e r t i s e m e n t
Queues of would-be customers have been congregating outside the offices of ATS Bullion in London as more people pin their hopes on gold being the answer to the global financial crisis.
Sandra Conway, managing director at ATS, one of the UK’s leading gold coin and bar merchants, said: “There has been enormous demand. There are very few sellers of physical gold and we have had queues of people today.”
Research from BullionVault.com shows that an investment of £1,000 in gold at the start of the decade turned into £2,691 by the beginning of September – or three times the return from the average cash Isa.
Peter Hambro, founder of Hambro Mining, the second-largest gold producer in Russia, said: “There is a strong case for people buying into gold as a reserve asset right now, as the cost of bringing on new production is so great that it simply won’t happen, so the price is likely to be supported and rise.”