Capital Gold Group Report: Gold Coins Preserve Wealth

Philip Scott, This is Money

24 May 2008

Investors running scared from global stock market turmoil have flocked to gold funds, but is it worth putting your cash into the metal itself - sold as coins and bullion? tom of Form

With investors fearing global stock market volatility, gold has enjoyed a bumper year after finally hitting the $1,000 mark on March 17.

Although it has pulled back in recent weeks, the price of gold remains high and its climb has been steady.  It averaged $924 per ounce in the first three months of the year - an 18% rise over the last three months of 2007.

And investors are piling in, snapping up gold directly or buying funds that back the precious metal. Figures from the World Gold Council show investment surged 163% to 284 tonnes in the first quarter of 2008.

But in addition the gold coin market has had a very strong ride. John Mulligan, investment research manager at the World Gold Council, says: 'The retail coin market has had a very successful year.

'It would appear that the failing of Northern Rock, the credit crunch and all the general uncertainty that followed, has pushed consumers towards gold.'

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