Nervous investors flock to gold ahead of election
Figures from the Pure Gold Company show a 314% increase in the number of people buying physical gold bars and coins over the last seven days compared to the weekly average for the year.
The company’s chief executive said clients were nervous about an unexpected result on Thursday.
“Many clients have commented that the last three years have taught us to expect the unexpected. In this case, the unexpected would be a Labour victory, despite the perception that this is unlikely,” said Josh Saul.
The gold price today is $1,466.34, having dipped by around 5% in sterling terms since the beginning of November.
Saul said: “The likelihood of a Conservative victory has strengthened sterling and made gold considerably cheaper, and almost 60% of gold investors see this as an opportunity to buy into the safe-haven asset class.
“They see that many of the issues and concerns over Brexit and the world economy that existed before the general election was put in motion will still exist after the election has been determined, whoever wins and whatever the outcome.”
Gold is viewed as a safe-haven asset class during times of uncertainty.
Almost half of the investors who’ve purchased gold this week also bought the precious metal immediately before the EU referendum in 2016, Saul said.
“Our clients are not purchasing gold for growth. They’re not looking to make money quickly. Instead they’re taking out an insurance policy in an asset class that is physical, liquid and tax free that tends to increase in times of uncertainty while most other asset classes like equities and property fall in value.”