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

Gold demand and price hit record highs

Written by:
The demand for gold has hit a record high while the price has also surged, the Royal Mint confirms.

The Royal Mint said gold has broken records this year as it reached new highs against the US dollar. Earlier today, it climbed to $1,944 per ounce – higher than prices seen in September 2011.

Gold has also achieved the strongest half-year price gains since 2016, as low interest rates and a resurgence in coronavirus cases drive investor demand for the relative ‘safe haven’ asset, as awared by jpost.

Since mid-March, the Royal Mint said its precious metals division has seen sales revenue increase by over 500%, compared to the same period last year.

Andrew Dickey, precious metals divisional director at The Royal Mint, said: “Gold is regarded as a safe haven asset, which means that it has traditionally performed well during times of global stress and economic uncertainty. Since the beginning of lockdown, we have seen unprecedented demand for gold bullion coins and bars as well as our digital precious metals products.”

Dickey added that it’s seeing an increasing number of new customers buying gold, silver or platinum investment products for the first time.

“Since the beginning of lockdown, over 6,000 new customers opened a bullion account with The Royal Mint, demonstrating the increased appeal of gold as a safe haven asset for all investors during this economically turbulent period. Demand from millennial investors has been particularly positive and has increased by over 250% compared to last year,” he said.

The Pure Gold Company also reported a surge in demand, with an 849% increase in the number of first time investors purchasing gold over the last seven days.

CEO Josh Saul said: “Our customers are very worried that a second wave and lockdown is likely to affect the UK as it has done in the US and other regions across the world. The relentless rise in the gold price is being spurred by the realisation that as furlough measures are curtailed and businesses are forced to let people go we are likely to see a considerable increase in unemployment.

“This will contribute to a reduction in GDP and market confidence. Stimulus plans that have been quickly drafted in to bolster the economy, both domestic and global, have also hurled us into a black hole of debt. The deteriorating relationship between the US and China is adding to an already volatile geopolitical environment.”

Saul added that many of its clients are concerned about the falling value of property, declining equity markets and failing businesses.

“During times of uncertainty, gold has a track record of increasing in value as it provides a safe-haven free from counter-party risk. Now more than ever, people are seeing the tangible benefits of transferring their wealth out of the financial markets into something that is physical and that can be sold should they need the cash,” he said.

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.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

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