Jersey residents will be clinging onto gold as it becomes approved for inclusion in tax-efficient pension schemes on the island, despite its price dropping to a 32-year annual low only weeks ago.

Jersey residents will be encouraged to keep gold as it becomes approved for inclusion in tax-efficient pension schemes on the island, despite its price dropping to a 32-year annual low only weeks ago.

The Jersey Comptroller of Income Tax has approved the inclusion of gold bullion as part of Retirement Annuity Trust Schemes, or RATS.

GoldMoney, a precious metals provider headquartered on the island, views the move as a “big vote of confidence for gold”, it said in a statement.

The value of gold suffered last year as threat of quantitative easing tapering loomed over investors, and assets became the purchase of choice.

The tax efficiencies on offer in pensions will be a bonus to those who already buy gold as part of their retirement planning.

The RAT scheme is a Jersey trust arrangement which allows for pension contributions to be administered on behalf of a local resident by a trust company. Contributions can be funded from the individual, an employer or a combination of both. Full tax relief is available on contributions up to an agreed limit.

Certain regulations have been put in place in light of the change; only investment-grade gold bullion purchased through a regulated company, and kept in independent, fully-insured allocated storage, can be used.