Josh Saul, CEO of The Pure Gold Company explains, “Concerns about the stability of the banking and financial system have already prompted people to buy gold this year. With these fears confirmed by the Bank of England’s report, clients are returning to take advantage of the gold price, which is at a relative low compared to last month. Finance professionals, teachers, engineers and medical professionals have all been buying physical gold to remove exposure to banks and equities for fear of both short and long-term volatility.”
In a study published last week, the Bank of England said the European corporate bond market could prove an even greater risk to market stability than during the 2008 financial crisis.
“Brexit uncertainty and the recent unexpected fall in inflation have pushed the possibility of a rate rise out even further, weakening the pound and supporting the gold price,” Saul says, “We’ve seen a 49% rise in sales to first-time gold buyers, and a 65% increase in people removing exposure to equities within their pension or SIPP to purchase physical gold within the same vehicle. Our clients aren’t necessarily looking for growth. Whilst it’s understood that gold has outperformed other asset classes like equities, bonds, cash, inflation and property over the last 10 years, it’s the safety, security and wealth preservation aspect that really motivates them to purchase physical gold.”
Source: FTSE Global Markets
