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BBC Money Watch Investment Comparative

Thursday, July 22, 2010

Money Watch on BBC One last night (21st July 2010) as part of a series titled How to Beat Tough Times, featured gold in a comparative between various different forms of high performance investments.  The hour long prime time show concluded with a five minute feature investigating four different investments over a period of up to twenty years. The show invited investment expert Jonathan Davies to assess the performance of property, stocks and shares, gold bullion and fine wine.

The Stocks and Shares Investment - Over the last year (June 2009 to 2010) The best performing option was reported to be stocks and shares, not a complete surprise considering the stock market could really only move one way following the global recession. Over the past 12 months, stocks and shares have soared an impressive 40%, but, that’s a market spread, you’ll need to be a pretty Sharpe investor to identify stocks and shares that are on the move and in the right direction! And not forgetting, the stock market is widely viewed as a high risk investment avenue.

The Gold Bullion Investment - Over the past ten years, gold bullion was the clear winner, accumulating a huge 300% growth in value. Gold has maintained steady growth throughout history and has weathered the economic ups and downs of the past century well. Gold has earned its stable, solid investment reputation and is the first place nervous investors turn to when times are bad. Confidence in gold investments has always been high.

The Fine Wine Investment - The clear winner for sheer impressive growth, albeit over a much longer 20 year term is wine! Fine wine investments have grown a massive 1300% over the past 20 years! Investing in wine isn’t so common place and seen as more of a niche investment.  With the huge range of wines from around the world, forecasting which wine to put you money into will also throw up considerable risk. Fine wines are a very volatile product, kept in anything but the most precisely temperate, humid and dusky conditions are liable to spoil along with your investment value.

The Property Market – The programme didn’t venture too far with the property market comparative results and if the show had aired five years ago, we’re pretty sure property would have been up there on a par with the other investments. The property marketing has a fairly high entry point for most investors and in recent years has shown just how volatile the price of property can be.  Property is a difficult animal to generalise due to geographic, quality and a whole host of other factors. Some investments in property have been a huge success, while others far from it!

To conclude the results of the investigation, while the short term winner appears to be stocks and shares, it is important to note that looking back beyond the past twelve months the value of stock markets around the world plummeted and this rise is really just the road to recovery from their pre-recession standing.  For sheer impressive growth figures, wine wins hands down but is an investment requiring time to mature and bundles a huge quantity of risk into the equation.

So we come to gold… It will come as no surprise and ultimately convenient that we interpret the results as nothing but positive for the gold investment option but, with all things considered for a stable and secure short or long term investment gold has consistently performed well.  Gold is available in a wide range of weights, enabling everyone from the small time investor to the national banking institutions entry into the same common market. Gold is a currency, acknowledged globally and unmistakeable in every way.  There are no concerns of choosing the right type, make or model of gold and storage is a simple as a bank deposit vault.