Can't beat a bit of bullion

FIVE-MINUTE GUIDE TO... THE RECORD HIGH GOLD PRICE

- By Harvey Jones

HIGH BAR: Is gold a safe haven?

GOLD has smashed through the $4,000 (£2,960) mark for the first time, having doubled in just two years.

Some analysts now claim it could soon hit $5,000 an ounce but others are more cautious, warning that such spectacular gains can just as easily reverse.

So what’s driving the surge, and what should investors do now?

Gold has been a store of value for thousands of years and is the classic refuge when confidence in governments, currencies and markets begins to fade.

Rob Mansfield, independent financial adviser at Rootes Wealth Management, said the price rise shows that “investors are losing faith in the direction of the global economy”. He added: “Big government deficits and higher interest bills, combined with flatlining productivity, are causing a flight to safety.”