A golden opportunity for your portfolio

From January to the end of May, the price of gold bullion jumped by nearly 8%, driven by the Greek sovereign debt crisis and resulting flight towards safe-haven assets, writes Castlestone's Angus Murray

Ignore the gold bears. The three key developments that drove gold bullion to a new nominal high of $1251 on 8 June – economic/geopolitical risk, devaluation of money and growing cost of production – are still going strong. With the price potentially heading towards the $1,400-$1,600 range by next year, gold remains an ideal asset to strengthen any portfolio. Gold has continued riding the momentum built through the last decade, when the metal averaged an annual return of 15.19% versus -0.08% for the S&P 500. From January to the end of May, the price of gold bullion jumped by nearly 8%, dr...