Private investors panic buy gold amid coronavirus fears
The Pure Gold Company, which buys physical gold and silver on behalf of private investors, saw a 980% increase in gold sales over the last week, compared to the weekly average over the last year.
Chief executive Josh Saul said: “This level of demand is unprecedented. We have been order taking from 7am until 11pm most nights. Our brokers have been working throughout the weekend and we have encountered gold shortages most days.
“Usually clients have lots of questions about the market and how the investment works, but over the last 10 days it’s been a question of how much can they buy and how quickly can they do it.”
Saul said customers include financial professionals such as bankers and accountants, as well as retirees, builders and single mothers.
“Most are worried about the fate of the banks and being able to access money in a possible lock down scenario. Others are removing their wealth from a downward spiralling stock market and putting it into gold to either recover some of these losses or more importantly to stem their losses,” he said.
“Many clients believe there will be a deep recession that will last for some time.”
The Pure Gold Company reported a 1023% increase in clients over the age of 50 removing exposure to equities within their SIPP or pension to purchase physical gold bars within the same vehicle.
Saul explained: “Not only is this demographic worried about their own health, most have also seen more than a 20% fall in the value of their pension pots. Many do not have the time to wait for a market recovery and are very concerned about now having to work beyond retirement as a result. They believe purchasing physical gold will stop further losses and they hope to recover some of this lost ground with the precious metal.”