1 October 2013 | AIM Market

AIM Stock Exchange investors turn to gold

Research has shown that smaller and medium sized gold mining companies listed on the AIM Stock Exchange have been one of the biggest beneficiaries since the rules regarding ISA portfolios were relaxed recently.

The change in the ISA rules was first proposed in the 2013March budget, and offers investors an asset that is protected from income tax, capital gains tax and inheritance. It is the   Government’s intention that, by relaxing the tax rules on investing in smaller company shares on AIM, investment in growing companies will help stimulate the UK’s economic recovery. By putting AIM shares into an ISA means that investors benefit from tax free returns and income.

Following the rule change, the number of trades in AIM Stock exchange companies has doubled. Perhaps surprisingly, resources companies have proved to be amongst the most popular sectors. In particular smaller gold mining companies have grabbed considerable AIM investor attention.

The AIM Stock Exchange has a long track record of providing a home for companies engaged in gold and precious mineral exploration. Although following an unprecedented run on gold over recent months, the price of gold had fallen and market sentiment in turn fell away in the sector.

Now it appears that some of AIM’s smaller mining companies are back in vogue and the price of gold has suddenly increased again over recent weeks.

Currently the price of gold is hovering below the $1,400 per oz mark with many pointing to the recent events in Syria and heightened tensions in the Middle East as the catalyst for the rise in price.

The most popular smaller gold mining companies listed on the AIM Stock Exchange over recent days have been SolGold and Red Rock Resources. Red Rock in particular has seen significant gains up over 200% in a month.

Although it is AIM’s gold mining companies that are hitting the headlines, other commodity and exploration companies too have seen significant investor interest and gains in their share price. Oil exploration companies such as Gulf Keystone plc, which is one of AIM’s smaller Oil Exploration companies, was the most popular traded commodity company on the market last month.

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