Sometimes all that glitters really is gold!

“The desire for gold is the most universal and deeply rooted commercial instinct of the human race.”

Gerald M. Loeb

The whole world knows that as recession looms you should invest in gold – the safest of safe havens. And nearly everybody thinks that investing in gold is only for the very rich. Whilst you may not be able to justify buying a 1kg ingot ($39,135.80 this morning), you can invest in gold from as little as £3000, protect your investment absolutely, and fix a return of 6% in just three months (24% annually).

Mining for Gold

Prospecting with a guaranteed return?! This investment is one that I looked at some months ago and rejected as too risky. But several months later the business is still paying investors a 12% return per annum and they have moved from exploratory mining to the pre-production stage with full production expected to begin imminently. The geologists, bankers and industrialists all agree that the mines in question will yield at a high level and if so the loan note in question will pay out at 12% per annum for the full three years. It´s mining so there is risk but this increasingly looks like a good income investment.

Commoditising Gold

We have now seen a number of our clients receive their full 6% per quarter (24% per annum) return……several times. This is gold investment at its simplest. You buy a certain amount of gold from an established mine pre-production – at a 6% discount against spot rates. The gold is mined and sold and you receive capital plus 6% within 3 months. Then you either take your profit and capital back……..or invest again. The provider is leveraging quantity discounts, taking advantage of refining value-add, and betting on gold prices increasing over a three month period……and that´s not much of a gamble at this stage in the current financial cycle. And, of course, the investment is asset-backed.

You wouldn´t, and shouldn´t, invest your whole life savings into gold-backed schemes. But with recent returns of between 12% and 24% per annum it would be rude not to indulge a small proportion of your wealth into the most primeval longing of the savvy investor!

Gold investments start at £3,000. Let us know here if you´d like to hear more.