Safe haven

Gold has been a favourite with investors looking for a safe haven since last year's turbulence began. But will this persist in 2009, or will the precious metal start to lose its shine as a hedging option? Pauline McCallion finds out

As a traditional store of value in times of financial trouble, gold has not disappointed in recent months. Since the financial crisis erupted in 2007, many equity markets have went into a freefall, with the S&P 500, for example, losing 38.5% during the course of 2008. The price of gold, meanwhile, has risen by 25%, from an average of $695.39 per ounce (oz) in 2007, to $871.96/oz last year. As of the end of May 2009, it was above $970/oz, with some forecasters predicting $1,000/oz by the end of