Investing in gold has never been more popular and it’s not difficult to see why. With the credit crunch still sweeping across the UK and Europe – not to mention the United States – and the uncertainties in British politics still being felt, the price of gold has soared to quite extraordinary levels.

Those investing in gold could see serious returns on their money as experts estimate that in sterling gold is selling for a whopping £700 an ounce. This demonstrates an increase of around 25% in just over 12 months.

Demand from investors is still rising so experts are hailing gold as the safest haven for your assets and money.

The rise in the demand for gold is not surprising. Gold has long been thought of as precious – we need only look to ancient scriptures and films for evidence of this. It manages to combine durability with mystique and beauty and as such investors and admirers of gold have been around for centuries.

Unsurprisingly, due to its beauty, gold is the most popular metal when it comes to investment. Even when prices have fell gold has still been the more popular choice when consumers are deciding what to invest in.

Interestingly, through history the value of gold and the demand from investors has risen in times of crisis. This includes wars, economic downturns, inflation and social unrest.
In times of crisis consumers fear for their assets and are concerned their money may be lost in banks or building societies. The collapse and near collapse of several banks since the onset of the economic crisis have done little to allay those fears.
Gold is seen as a solid investment since, while the price may have fluctuated over the years, the asset has always been seen as a precious one.
The current economic and political climate in the UK means now is the ideal time for investing in gold.

But how does it work?
There are several options but the two most basis are to buy shares of a gold exchange traded fund or, the less common option, buy shares in a gold mine. Investors can see a healthy return on the gold with either of these options so long as the demand for it does not start to fall.
But potential-investors need not worry – with prices soaring and the economy still some way off from finding its feet again all indicators point to the demand for gold heading upwards.

If you’re thinking of investing in gold - or indeed thinking of making any investment - then it is wise to see the advice of an independent financial adviser. He or she will be able to help you decide on the safest and most profitable home for your money.

Any investments – like any dealings with finance – are serious business and can have serious consequences – as well as substantial rewards. Investing in gold can be extremely lucrative if done at the right time and with the right advice. Consult your adviser before making any investments.