Brits pile into gold ahead of US election result
Much like the Brexit-effect when UK investors flocked to the ‘safe havens’ of gold and silver in the run up to and following the EU referendum, the race to the White House appears to be prompting investors on both sides of the Atlantic to seek shelter.
Gold investment firm The Pure Gold Company has seen a 69% increase in gold inquiries since the weekend, of which 59% came from UK investors. The firm saw a 39% rise in people purchasing gold ahead of the US election.
Chief executive Josh Saul said: “Many of our clients who are buying gold believe that the gold price will rally if Trump wins the election but they also believe that gold will increase (to a lesser extent) if Clinton wins. They fear they could be paying considerably more if they wait until the outcome is known and with the Brexit shock still front of mind, they don’t want to wait”.
BullionVault’s Adrian Ash also confirmed that traffic and inquiries from all regions have risen sharply so far in November, but the really stark jump is in the number of new US users making a money deposit for the first time, ready to buy.
“November’s daily average for newly funded US clients is currently 68% ahead of the previous 12 months. At this rate, November would be BullionVault’s strongest month for active new US clients since February 2012.
“That also shows in the strength of net demand to buy gold across our markets. In the first week of November, users have now added over 200 kilograms of gold to their aggregate holdings – almost half of October’s strong inflow – taking the total to a new record of 36.5 tonnes, worth almost $1.5bn (£1.3bn, more than most central banks hold,” he said.