Business Irish

Wednesday 7 December 2016

Golden opportunity for savers as firm offers easy access to ore

Charlie Weston Personal Finance Editor

Published 14/10/2010 | 05:00

CONSUMERS will now be able to buy small amounts of gold on a monthly basis after Dublin company GoldCore launched a new regular saver option.

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GoldCore said it will facilitate people spending as little as €150 to invest in the precious metal.

Savings must be maintained for a minimum of 12 months, after which individuals can continue saving in gold. Alternatively they can cash their gold or have it delivered to their door.

Many investment experts regard gold as an important hedge against economic risk, but others have claimed the price of the metal is displaying characteristics of a bubble.

Gold prices have been rising strongly, particularly since the global slowdown struck two years ago. It is now trading at a record $1,356.78 (€972.18) an ounce.

GoldCore's Stephen Flood said gold had outperformed all other asset classes in the past 10 years.

Bubble

Asked if the gold market was displaying characteristics of a bubble, he said the appreciation in its price in the past decade had been gradual compared with other assets that have experienced bubble situations.

Yesterday, global investment bank Goldman Sachs predicted that gold prices would rise as inflation in the US was a major risk.

It forecast that the gold spot price will reach $1,650 an ounce in a year's time.

Analysts at the US investment bank said that the commodity would continue its momentous rise, which has seen the precious metal jump to all-time record levels.

Consumer guru Eddie Hobbs said: "The introduction of a monthly savings programme is a welcome addition to the market and opens gold up to savers as a new asset class."

However, financial advisers warned that consumers should only have between 5pc and 10pc of their investments in gold.

Irish Independent

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