Halifax

Flash Crash Fails To Deter Gold Investors

14 May 2013

  • Halifax Share Dealing surveys investors to establish what impacts their investment strategies and where they are investing

Despite its recent plunge in value, 41.8% of retail investors who invest in gold say it's not changed their investment strategy and they are continuing to buy or hold, according to the latest Halifax Share Dealing Market Tracker.

A further 23.9% of retail investors who invest in the commodity say they have now gone 'risk on' and feel now is time to buy, with just 15.4% expecting it has further to fall and it is time to sell.

Nevertheless, investor attitudes towards gold remain broad and range from it being seen as a speculative commodity (27.7%), to a portfolio diversifier (17.6%), or a useful inflation hedge (16.9%). However, it is not for everyone and 33.5% of investors have not considered gold as an investment.

Of those who do not invest in gold, the main reasons given are that it is too hard to estimate a true value (40.4%), and it does not produce an income or pay dividends (38.4%)

Damian Stansfield, Halifax Share Dealing, comments:
"Few investments divide opinion like gold, with many investors viewing it as a volatile, risky or speculative commodity and firm opinions on both sides as to whether this is should be a positive or a negative.

"All investments involve a degree of risk and gold is no different. There’s no guarantee you’ll get back what you put in and investors should always have a good long think about what level of risk they're comfortable with before they make any investment."

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