BullionVault says it's been a good five years for gold prices as in the five years from 14 March 2008 to date the price of gold has increased by 115 per cent.
Adrian Ash, BullionVault’s head of research in London, said:
Consumers decide to put their hard earned money into physical gold for many reasons. In the main it’s to diversify away from other investment markets, to hedge against inflation or as a 'crisis insurance' if they fear global financial instability. Whatever the reason it’s clear that the last five years has seen unprecedented demand for gold.
Gold at $1,000 per ounce sounds like a bargain today, but four figures looked like a big price five years ago as the size of the financial crisis was still yet to dawn on most people. The West's government debt crisis is in the same position today, and who knows what the future will hold. Gold at $2,000 per ounce may seem cheap in time too.