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‘Unprecedented’ demand for gold as coronavirus grips Europe

Paloma Kubiak
Written By:
Paloma Kubiak

Investors are flocking to the seemingly safe-haven asset of gold as fear mounts over the spread of coronavirus in Europe.

The Pure Gold Company reports a 723% surge in people purchasing gold bars and coins in the past week, citing extreme concern over the risk of the Covid-19 virus which has some parts of Europe in lockdown.

The precious metal is now trading at $1,650 per oz (£1,280), having risen to $1,600 last week – a seven year high. It has rallied more than 11% since the beginning of the year.

Josh Saul, CEO of the gold investment firm, said: “Around 63% of clients who have invested in gold in the last week have been financial professionals concerned that the recent spread of coronavirus in Italy and now Germany suggests the UK may well follow suit. They are worried the stock market will continue to fall in value as businesses falter amid the uncertainty and expect the gold price to continue rallying.”

He added that the majority of clients aren’t buying gold to make money. “It’s more about protection and an insurance policy against events that put wealth at risk. Gold has a proven track record of increasing during times of uncertainty which range from recession to war to systemic global health concerns like SARS and coronavirus.”

Saul said they’ve seen a 624% increase in people removing wealth from equities and bonds in their pensions / SIPPs to purchase gold in the same vehicle.

He said: “They are very worried about the effect coronavirus, and other geopolitical and economic uncertainties, will have on their retirement.”