By Nia Williams
These new buyers of gold are citing concerns over the escalating “war of words” between North Korea and the USA, and heightened fears of outright war. Simmering tensions with Iran have added further insecurity to an already fragile geopolitical situation.
Across all buyers, the average amount of gold purchased has gone up 22% this week to £9,760.
The Pure Gold Company CEO, Josh Saul, said: “Notably, we’ve also seen a 78% increase in financial professionals purchasing physical gold. While they cite similar geopolitical motivations, they are also concerned that the lack of support for Angela Merkel during the German elections has and will add a fresh bout of uncertainty to financial markets.
“Furthermore, some investors fear that a rate hike in the US and UK may trigger a debt explosion, with a significant amount of people not being able to afford their mortgages and other debt. Even Transport for London’s decision not to renew Uber’s licence in London may exacerbate this problem, with some of the thousands of drivers more likely to default on car loans.
“Consequently, we’ve seen financial professionals and first time purchasers take advantage of a lower gold price (over 6% below its 2017 peak earlier this month), and as the equity markets have fallen and currency volatility has increased, the gold price has started to rise again.”
The highest price per ounce of gold over the past year hit £1,060.08; the year’s lowest price was £903.81. The current price is around £969.80, according to BullionByPost.
Source: Every Investor
