Is it Time to Sell Gold?

The gold price plummeted last year - and along with it funds invested in mining share and other precious metals. Is it time to give up on gold?

Emma Wall 9 January, 2014 | 1:22PM
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Gold has fallen further from favour. Credit ratings agency Moody's has warned several Canadian miners are in danger of having their credit rating downgraded thanks to the plummeting price of gold. 

The value of gold has been on a steady decline since August 2012, when the price peaked at $1,775 an ounce. The previous summer it had hit a 20-year high of $1,838 but now languishes at $1,228 - a significant slice off the top. 

If you had been clever enough to snap up gold exposure after the dot-com bubble burst in 2000 - when gold was valued at around $270 an ounce and sell up 12 years later, you would probably be able to retire. 

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BlackRock Gold and General A Acc1,163.42 GBP-3.37Rating
BlackRock World Mining Trust Ord536.07 GBP-1.09Rating
LF Ruffer Gold C Acc267.95 GBP0.27Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar