INVESTING in gold could be the way forward in 2009, according to a global gold fund manager.

In 2008, turnover in trading rose by 58% to a record $20.2 trillion while silver trading also saw a dramatic increase for the year of 39% to a record $20.6 trillion.

But while the figures from International Financial Services London suggest investors were attracted to gold in a way never seen before, its value actually fell from an all-time high of $1,011 per ounce in March to $870 at the end of the year.

For the month ending December 2008, the gold price actually rose again by 7% from $814 per ounce.

However, despite the late rally, Investec global gold portfolio manager Daniel Sacks said last year would not be fondly remembered by the precious-metals sector, with gold shares as represented by the HSBC gold index losing 25% of their value, although 2009 could be different.

‘Although it was clearly a poor year for almost any investment, gold stocks still managed to outperform the S&P 500 for the year,’ said Mr Sacks.