Gold is a glittering prospect for investors who fear a British economic collapse if the nation votes for a Brexit at the fast-approaching referendum on June 23.
London bullion traders are reporting a steady queue of customers for gold coins and bars.
Even billionaire investor George Soros is selling equities and other assets in favour of gold.
Soros reckons the chances of a Brexit are high and he is hedging his fortune against the prospect with the precious metal.
Other investors have gone to greater lengths to protect their cash.
Buried treasure in the garden
One pensioner has switched £850,000 savings to gold after losing significant amounts in other economic disasters.
The gold is divided among his 18 children and grandchildren and buried in different plots of his five-acre garden. Each child has a treasure map pinpointing their share with precise satellite co-ordinates.
Although the price of gold has perked up since the start of the year, selling up and buying bullion does not seem a smart investment.
Gold may go up in value, but putting cash into metal means the money is not producing an income and drops in value as inflation goes up.
For retirement savers who want to hold gold in their pensions, SIPPS have allowed investors to hold the precious metal proofed as at least 99.5% pure since 2014.
Is gold a gamble?
Now, the Royal Mint is selling pension savers 99.9% pure gold as 100-gram bars or as a share of a 400-gram bar. Buyers can take their gold away or keep their treasure secure in the Mint’s vaults at a cost of 1% a year plus VAT.
Investing in gold is a gamble. The price per ounce soared from $287 to $1,837 between 2000 and 2011, but has slumped to close to $1,250 now.
For investors who want to hold gold in their pensions, financial experts suggest cap the amount at no more than 5% of the fund value.
Exchange Traded Funds (ETFs) are probably a more effective way to include gold in a portfolio.
Gold ETFs are investments that track the price of the precious metal that can be traded like stocks and shares.
