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

Fuel crisis and end of furlough prompt flight to gold

0
Written by:
06/10/2021
Demand for gold has soared in the past week as uncertainty about the state of the British economy intensifies.
Fuel crisis and end of furlough prompt flight to gold

The Pure Gold Company, which buys physical gold and silver on behalf of private investors, saw a 719 per cent increase in sales of gold bars and coins by first time investors over the past seven days compared with the previous week.

“The end of furlough, an on-going petrol crisis, HGV driver shortage and intermittent empty shelves are stoking fear of more chronic trade disruptions,” said Josh Saul, chief executive of The Pure Gold Company.

“Our clients are looking for a safe-haven asset that will protect their wealth amidst growing uncertainty.”

The firm said it had also seen a 257 per cent increase in clients selling physical gold bought in the last few years.

“They’re looking to provide liquidity for debt and bills that their depleted incomes won’t satisfy,” said Saul.

However, he cautioned that gold should be viewed as a long-term investment that rides out inflationary pressures and economic peaks and troughs.

He said: “Depending on how long they have held their gold for, some are enjoying growth of up to 50 per cent, while others selling within a shorter time frame haven’t fared as well.”

Elsewhere, the firm has seen a 73 per cent rise in recently divorced clients purchasing gold and silver since March 2020.

Many of these clients have cash they eventually want to be put towards the purchase of a house, but they do not want to leave it in the bank earning nothing nor expose it to the stock market.

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.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week