Retirement savers can now invest in bullion for their golden years after the Revenue Commissioners gave its seal of approval to gold bullion investment certificates for use in self-directed pension funds.

The Revenue has lifted a 5 per cent limit it had placed on the amount which holders of self-administered pension schemes could invest in the Perth Mint gold certificate programme sold by Gold Investments.

It is understood that the Revenue was concerned that the precious metal was moveable and could break the "arm's length" and "pride of possession" rules for pension investments, which exclude people from receiving tax relief on investments in assets such as works of art, yachts or holiday homes.

But the Perth Mint certificates have now met the criteria as the company has assured the Revenue that although the physical gold bullion is owned by the investor, it is held by the government-owned Perth Mint in Western Australia in unallocated amounts and cannot be physically shipped to the owner.

The Revenue's move means company directors and high-net-worth individuals who set up self-administered pension schemes can receive tax relief on investments in gold, which is trading at a 27-year high. But the gold bullion must be immoveable and stored with a regulated third party: investors cannot receive tax relief on privately-held gold bars, coins or jewellery.

The price of an ounce of gold broke through $800 this week, its highest level since 1980, as the sinking dollar and turmoil in equity markets enhanced its allure as a haven for investors.