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Wednesday 1 October 2014

Precious metal no longer a 'safe haven'

Published 31/05/2014 | 02:30

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SHARES in Anglo Irish Bank have proved a disastrous investment for the Quinns but anybody investing in gold has not been too clever either.

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The precious metal is often seen as a safe-haven investment at times of geopolitical uncertainty and lower stock prices but the pick-up in the global economy has pushed prices downwards.

Bullion prices tumbled 28pc last year. Just a few years ago, gold was trading at $2,000 (€1,467) an ounce as investors feared the global economy could implode.

These days, gold is hovering below $1,300 (€954) an ounce because most people believe that the major economies are on the mend.

Gold prices still fluctuate; the metal rose recently as tensions between Ukraine and Russia left some people worrying.

"There isn't much incentive for people to buy gold at the moment," analyst Zhu Siquan said yesterday.

Irish Independent

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