Does the gold price have further to rise?

According to recent research by Barclays Stockbrokers, almost a third of investors believe the gold price will rise and therefore it’s currently a good time to buy gold.

The research results are from a poll carried out amongst Barclays Stockbroker clients earlier in March.

As well as a third expecting the gold price to rise, almost another 20% will be holding onto their gold as they believe it will be maintaining its current value.

Interestingly though a further third of those who participated in the poll believed the price has topped and therefore it is a good time sell gold.

Head of Investment at Barclays Stockbrokers, Barbara-Ann King, commented ‘Gold is traditionally seen as a safe haven for investors in turbulent market conditions; this year saw the price of gold rise to a peak above $1000 per troy ounce in February, before falling back again as investors took their profits.’

She added ‘It has again been volatile more recently, with the price moving up sharply following the Fed’s announcement of aggressive quantitative easing in the US.’

Retail investors can invest in gold through such as Exchange Traded Commodities (ETCs) through the LSE, or there are managed funds which focus on gold.

Investment in gold doesn’t produce income in itself, its value lies in its capital value which can go up as well as down. The value of gold is volatile and is subject to market conditions.

Independent advice should be sought as appropriate to determine the suitability of investing in gold.