Leading gold bullion provider calculates the ‘fair value’ of gold to UK savers as insurance against inflation

The value of gold as an insurance policy to protect your savings against inflation and potential financial risks could be closer to $4,000 per ounce, according to the CEO of the UK’s leading gold investment service.

BullionVault founder and CEO, Paul Tustain, believes that at $1,400/oz the market still significantly undervalues gold and its ability to protect savings from the risks of hyper inflation, currency crises, sovereign debt defaults, and other serious economic shocks.

BullionVault’s CEO Paul Tustain has developed an online “gold calculator” to estimate the current value of gold to an investor in terms of its ability to protect individual wealth against economic stagnation and crises.

Using the calculator to analyse historical data and the probability of various inflation outcomes over a 15 year period, Paul Tustain calculates the current “fair value” of gold today at $3,844/oz. Investors can use the calculator to test Tustain’s theory by altering the figures in line with their own economic predictions. Go to http://www.bullionvault.com/GoldWhereToNow/Part1.html

Paul Tustain said: “It is the ability of gold to rescue your finances when things go badly wrong that gives it a valuable premium above its long term base value, which is an ounce of gold for a good suit of clothes”.

“I believe that Gold is worth a very great deal more than the price it’s currently trading at, based on my expectations for the rate of inflation and currency devaluation. I value it at around $3,800, which is why I’m delighted to spend my spare cash buying gold at its current price of just over $1,400; a price that discounts the risk of hyperinflation to zero. I hope you will apply your own inflation expectations and calculate your own value for gold.”

Paul added: “If you buy some gold now, my guess is that it will contribute more to your comfort in old age than more traditional savings are likely to, as well as leaving your own children with something on the plus side of the ledger”.

Please Note:This presentation is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.