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Independent on Sunday: Dangers Lurk in the Old Safe Havens

LONDON, 27 May 2012 - A warning for gold investors from world-leading online precious-metals exchange BullionVault today features in a report on "safe haven" investing from the UK's Independent on Sunday newspaper.

"Cash savings, government debt and gold used to be reliable bets in turbulent times," says finance reporter Julian Knight. But even these can carry risks "amid the Eurozone crisis," he warns.

"Investment wise [in gold], the biggest pitfall is expecting gold to act as a magic safe haven when everything else falls," the newspaper quotes Adrian Ash, head of research at BullionVault's offices in London.

"Gold is subject to just the same selling pressure as equities and commodities when investment funds need to cover client redemptions. Gold fell when Lehman Brothers collapsed, and it's fallen again during this latest round of Euro panic."

Longer-term, however, the bigger risk lies in buying the wrong form of gold investment and so cutting gains or extending losses, says Adrian.

"Mr Ash adds investors also fall into the trap of buying expensive gold," says The Independent - "that is gold that has been manufactured into a 'collectable' or buying into funds which trade complex financial instruments such as futures in the gold market.

"These are not for 'normal everyday investors'," agrees independent financial advisor Danny Cox from Hargreaves Lansdown, also quoted by The Independent, "as there are quite substantial risks with them."

Read the full report, with further warnings on cash and bonds, at The Independent here...

Gold bullion - Buy online at live gold prices.

Independent on Sunday