Gold is one of the most attractive investment opportunities on the market after its price hit a record high of almost $1,300 an ounce yesterday, according to LOM's head trader Dave Barker.

Mr. Barker said that the reasons behind the precious metal's meteoric rise over the past couple of weeks were in response to an excess of money in the system produced by central banks and the Federal Open Market Committee's announcement on Tuesday that it was prepared to agree on another round of quantitative easing, as well as a falling dollar. He said there were a number of different ways to invest in gold depending on an individual's circumstances, ranging from exchange-traded funds (ETFs) to physical gold itself.

"What is really happening here is that as more money is being created, investors are flocking to the precious metals market, specifically gold as the ultimate currency," said Mr. Barker.

Mr. Barker said that it was hard to know the best time to buy a commodity such as gold, particularly when it reached a high of $1,296.30 as it did yesterday, having been at $300 a few years ago.

He said that the value of gold had appreciated steadily, increasing by 21 percent since February and tripling since 2004, and despite some possible short-term corrections it would continue to climb in the long term.

"The most important thing is that the path it has taken has not trended parabolic, it has been steady," he said.

"I do think the overall direction for gold is up and I don't see why that should fundamentally change in this current environment."

Indeed gold has become a staple of portfolios for private bankers and other advisers to the rich in recent months, with some experts recommending an asset allocation of about five percent, mainly as an insurance against the fallout from financial crisis.

It has also offered a degree of security in an increasingly uncertain world in light of growing concerns over the global economy, sovereign risk, inflation and demand for resources as investors' attitudes have also changed.

The precious metal has similarly proved to be another way to diversify and can appeal largely due to its low correlation to equities.

Mr. Barker said that the choice of investment method was down to what an investor was trying to achieve with their money, with someone trading the market better off going for a more liquid investment in the form of an ETF or futures contract, while those looking to protect their net worth and wealth over a long period of time being more suited to buying bullion from banks or reputable dealers.

ETFs also have the advantage of being easy to trade and eliminating the storage and security issues that come with physical gold, with most tracking real gold prices, but there have also been concerns raised over their performance during a crisis. Mining stocks can also offer exposure to gold's upside.

Meanwhile demand for gold has continued to grow from markets like China and India, and the World Gold Council reported an upsurge of 36 percent in the second quarter of this year to 1,050 metric tonnes, with the bulk coming from investors in jewellery. This has been mirrored in the supply of gold, with total mine supply up six percent over the same period, driven by newer and smaller mines.

"Here at LOM we offer the entire spectrum of products that would allow customers to gain exposure to gold in the manner that they want to," he said.

For more information about investing in gold contact LOM on 292-5000.