Gold bullion best asset bar none

GOLD bullion beat all other asset classes in 2008 for the second year running and its prospects "look good" for 2009, according to BullionVault, an online market.

Its analysis shows that £1,000 invested in gold bullion on New Year's eve in 2007 was worth £1,427 by December 31 2008. Over that period, the FTSE 100 lost almost one third of its capitalisation, turning £1,000 into less than £689.

Before maintenance and mortgage costs, residential property has turned every £1,000 invested in bricks and mortar into £870. Cash individual savings accounts added £46 in average interest payments, just outstripping retail price inflation of 3.7%.

Adrian Ash, head of research at BullionVault, said: "Since Gordon Brown sold half the nation's gold reserves at rock bottom 10 years ago, gold bullion has been by far the best performing asset class for British investors overall. The recession continues to depress the stock market, and so 2009 looks good for gold – if only because it looks so bad for everything else."

Since the end of 1999, gold has risen 246% against Sterling.