You are here: Home - Investing - Experienced Investor - News -

Brits flock to gold amid Brexit fears

Written by: Danielle Levy
UK investors are rushing to buy gold on the back of concerns about Brexit and potential market volatility.

The Pure Gold Company, which buys physical gold and silver on behalf of individuals, reported a 324% increase in the number of people purchasing physical gold bars and coins this week. Gold is seen as an investment safe haven during times of uncertainty.

The increase in gold purchases is likely to have been caused by prime minister Theresa May’s vote in the House of Commons on Tuesday on her Brexit deal. This was defeated by 230 votes and means that both the future of the government and the path ahead for Brexit hang in the balance.

“Just last night, we saw a 173% increase in enquires (compared to the average over the last 12 months) as it was announced that Theresa May’s Brexit deal succumbed to the largest defeat for a sitting government in history,” Josh Saul, chief executive of the gold investment business, explained

“We remained open until 10pm taking orders from panic-stricken investors, as many of them expressed concern over the prospect of either a general election and/or the UK leaving the EU without a deal and the effect this will have on our economy.”

Why are they buying gold?

Since the beginning of 2019, The Pure Gold Company has seen a 71% increase in the amount of people purchasing gold for their pension of Sipp (self-invested personal pension).

“Our clients are not purchasing gold for growth, it’s more about safety and security in the event of market failure. The trend is simple – as most asset classes fall in value, gold tends to increase and for this reason people purchase the yellow metal in anticipation that equities and property prices continue to be volatile,” Saul explained.

The Royal Mint, a government-owned mint which produces coins in the UK, has also seen a significant increase in demand for gold so far in January and at the end of last year. Bloomberg reported that Chris Howard, director of precious metals at The Royal Mint, also puts this down to the UK’s uncertain exit path from the EU.

“We have no doubt [it] is largely attributed to Brexit turmoil and subsequent market volatility,” he said.

In spite of the uncertainty in the UK, the gold price has fallen from $1,294.80 on 3 January to $1,289.10 today. This is likely to be down to the fact that equity markets across the globe have started to recover, following the sell-off that took place in the fourth quarter of last year.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week