“There has been a threefold increase in the number of people reducing their reliance on shares in their pension funds this year; they are buying gold bars instead.”
When crises loom, many opt for a so-called flight to safety, hurling their money into the precious metal as its value climbs and (they fear) other assets stumble and prices plummet.
The resignation of Boris Johnson as foreign secretary could have ramifications for Britain’s Brexit prospects — but there is another consequence many may have missed.
“We saw a 237% increase in people purchasing physical gold earlier this week, following the resignation of David Davis and Boris Johnson.”
Investors flocked to the safety of gold in the hours after the UK experienced political turmoil as two senior cabinet members resigned yesterday.
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The Pure Gold Company said it has seen “a 193% increase in people removing exposure to their equities from within their pensions/Sipps” in order to purchase physical gold bars within the same vehicle.
The price hit an all-time high of $1,917.90 (£1,455.78) an ounce in August 2011 when the euro threatened to implode, but has fallen by a third to trade at $1,275 now.
It is currently fashionable to pay for your latte with Bitcoin at the handful of trendy coffee shops that accept the cryptocurrency. You could also theoretically use your legal tender gold coins to pay for a macchiato,
Gold is extremely volatile on a day-to-day basis, but it demonstrably maintains its value over the very long term
Hedge funds are often viewed as an indicator of market direction and as they’re now piling investment resources into gold, it’s worth considering what they know that ordinary investors may not.
Maurice Obstfeld, economic counsellor at the IMF, said: “The first shots in a potential trade war have now been fired.