The Pure Gold Company, which buys physical gold and silver on behalf of private investors, saw a 326% increase in sales of gold bars and coins over the past week, compared with the 12-month average.

“Our clients are all worried about the fallout of an invasion in the east coupled with the worst inflationary conditions we have seen for 40 years. This worry is affecting clients from all backgrounds including teachers, doctors, engineers and investment bankers,” said Josh Saul, chief executive of The Pure Gold Company.

He added: “Many are anxious about leaving their savings in banks or keeping investments in the stock market as the turbulent conditions could get worse in the days and weeks to come.”

Gold has increased by over 6% since the beginning of February as people flock to the precious metal for its relatively safe haven status as the Russia Ukraine tensions weigh on market sentiment.

The firm said it has also seen a 619% increase in people removing exposure to equities and funds with their pension/SIPP as they look to add gold.

Saul said: “The financial aftermath of the pandemic coupled with inflationary pressure and geopolitical uncertainty is negatively affecting equities which can adversely weigh on people’s retirement prospects. Purchasing gold allows clients to remove their wealth from the banking system during times of unrest but with the necessary liquidity to buy back into the equity market when they’re ready to do so.

“Our clients do not purchase gold purely for growth. It is safety and security from unpredictability which is the underlying driver. Clients understand that their savings are in an asset class that is physical, that tends to increase in value during times of uncertainty (and free from tax in certain circumstances) and can be converted back into cash quickly. Gold has been a safe-haven asset for hundreds of years, and more recently increased in value during the uncertainty and turmoil of Brexit and the Covid-19 outbreak. Many are looking to this safe-haven now as the geopolitical and economic uncertainty returns.”