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More on gold as an smart investment |
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In a move which surprised other retailers in England, the upmarket London store Harrods recently began direct sales of gold bullion, everything from little 5g bars, right up to 400oz ('Fort Knox' size) bars worth nearly half a million dollars.
The Financial Times reports sales are higher than the store expected, and goes on the speculate on the continuing attraction of gold to small and not so small investors. Pension fund and hedge fund managers are also now apparently much more sympathetic to gold, having in the past been wary of it, previously calling it a 'no utility' or a 'no return' or a 'dead' asset. Of course, if the spot price of gold is rising month by month that is no longer true.
But the article goes on to also speculate, as every such article does as night follows day, whether we have reached 'the top of the market' and if the price of gold is set to take a big drop. Apparently this is not likely, partly because much of the money going into gold from institutions is in the form of bullion backed exchange traded funds (ETFs), which allow gold to be traded as easily as shares. These new vehicles, patronized by large institutions and long-term investors as they are, serve indirectly to ensure a collapse in the gold price is highly unlikely.
The Financial Times conclusion? '...gold prices should remain high for the forseeable future'.
OK, time to take action. What gold coins or bullion coins are on offer today? See 'Types of gold coin' on the left of this page and take your pick. But for myself I'll pass on the 400oz gold bars, for the moment....
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Gold Coins blog