The Swiss private bank Clariden Leu is launching a product backed by physical gold to the Swiss market, which retail clients can participate in until 3 November.

The exchange-traded gold derivative allows investors to purchase the metal in quantities as little as one ounce (as opposed to the usual 12.5 kilogram bars), with the right to demand delivery.

Despite the precious metal hitting all-time highs in terms of price, currently over $1,300, many investors are still bullish on the asset class and see further upside to investment in the yellow metal. From 2001 to 2010, gold delivered an average annual return of 16 per cent, according to Clariden Leu.

Part of its strong performance over the last couple of years is due to fiscal woes, which give rise to doubts about central banks’ commitment to the strength of their currency. Meanwhile, interest rates are low, boosting other asset classes as investors chase returns.

"Because Western industrial nations are deeply indebted, the loss of confidence in the dollar and the euro will persist," said Dr Peter Labhart, head of alternative investments at Clariden Leu.