THE ECONOMIC gloom and plummeting stock markets have prompted many investors to buy precious metals. So gold has, most unexpectedly, turned out to be the most lucrative investment of the past decade.

On the international commodity markets, gold is traded in US dollars. At the end of 2001, it was priced at $276 per ounce; this week it was trading at more than $1,800 per ounce.

On Thursday, the Financial Times reported a prediction by Swiss bank UBS that the price would reach $2,075 per ounce next year. But could gold become another bubble? Caveat emptor.

Dublin auctioneer John Weldon, who specialises in antique jewellery, silver and gold, said, “The price of a gold sovereign coin has risen from about €55 10 years ago to about €270 today.”

He is marking 10 years in business, during which he has sold about 48,000 lots, with an anniversary auction next Tuesday, September 13th, at 2pm in his saleroom at Cow’s Lane, Temple Bar, in Dublin city centre.

Lots include a selection of gold coins and several pieces of gold jewellery including an Albert chain made of 15 carat gold (€700-€900). (The Albert chain, named after Queen Victoria’s husband has a T-bar, usually a fob drop and two chains with watch swivels.) There is also an American $10 gold coin dated 1879 (€400-€600) and a gold guinea dated 1795 (€250-€350).