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Thursday, 15th January 2009 (1374 views)

Gold is a traditional "safe haven" for investors and the recent economic downturn has pushed up trading, according to new research.

A report by International Financial Services London (ISFL) revealed that turnover in gold rose by 58 per cent last year to a record $20.2 trillion (£13.85 trillion).

The study stated that financial turmoil has led to more people investing in precious metals and daily reported net trading in gold on the London Bullion Market Association averaged $20 billion for the first 11 months of last year.

According to the ISFL Bullion Markets 2009 report, "the traditional 'safe-haven' appeal of precious metals has attracted many investors to this asset class".

The report suggested that the decentralised over-the-counter (OTC) market accounted for almost three-quarters of gold trading last year.

An Australian stockbroker recently told the Melbourne Herald Sun that investors should purchase physical gold in order to weather the current economic crisis, as it has performed well in the current financial markets slowdown.

 

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