Gold turns £27,800 into £1m
A new report, released today by the Centre for Economics & Business Research and CoinInvestDirect, an online precious metals dealer, has found that the gold price has soared by some 3,500pc since 1970. This means an investor who spent £27,800 on gold and retained their investment ever since will today be a millionaire.
An investor with more modest sums would still be sitting on incredible gains. For instance, an investment of £10,000 would be worth £360,000 today.
According to the report one of the main drivers behind gold’s success over the past decade is increased demand from emerging market economies. Fast growing countries, such as Brazil, Russia, India and China, have doubled their gold reserves since 2003. Because there have been more buyers than sellers, the gold price has been well supported.
"The emergence of Asia, Latin America, and the Middle East into the global economy has played a significant role in this dramatic price growth," the report said. "Economic development has led to higher incomes, raising the levels of private consumption as well as private savings in emerging economies, where less-well developed financial sectors make gold an attractive store of wealth in these countries."
Read More: www.telegraph.co.uk/finance/personalfinance/investing/gold/10445952/Gold-turns-27800-into-1m.html