5th July 2016
The Pure Gold Company quoted by the Daily Express commenting on investor demand for physical gold at the expense of other asset classes like equities and property.
By Lana Clements
Gold could reach its highest ever level in the coming months, as investors search for a safe haven for their cash, according to one fund manager.
Prices of the precious metal hit a two-year high on Monday amid increased nerves over the global economy.
Gold is seen as one of the safest places for cash in times of economic and stock market turmoil.
Prices are currently at around $1,352, but climbed to record highs of $1,900 during the financial crisis.
Josh Saul, chief executive of The Pure Gold Company, said the firm has been taking gold orders all weekend.
He added: “There’s been no let-up in demand.
“We’ve seen a significant number of non-UK nationals buying gold to protect themselves from currency fluctuations, and we’ve also seen more people turn to gold mid-way through their property purchases.
“The Brexit issue has stoked fears of a property slowdown so some clients who had sold their property but had not yet completed on another have pulled out in order to buy physical gold coins and bars.”
Amid record low yields – or returns – on another safe haven investment government bonds, gold prices could continue to rise, say experts.
Swiss Asia Capital’s Singapore managing director and chief investment officer, Juerg Kiener told CNBC that he believes gold prices could reach record highs in the next 18 months.
He said: “This fall-off in trust is resulting in people looking at different ways to invest, particularly in an environment when the government controls the whole fixed income market, which is negative.
“At least (in gold), you don’t have negative yields, there is no new supply…and falling production.”
Source: The Daily Express
