The Pure Gold Company
The price of gold surged to its highest level so far this year in the wake of North Korea firing a missile over Northern Japan, The Pure Gold Company discusses.
By Kristen McGachey
The traditional safe haven asset was priced at $1,325.60 on the Commodity Exchange Index (Comex), up 0.8% since Monday.
Earlier this month, as US President Donald Trump and North Korean leader Kim Jong-Un were engaged in a game of nuclear chicken, investors piled into the asset class, pushing the price up to £1,276.
Since then, the price of gold on the Comex has risen 3.4%, as investors scramble to line their portfolios with the safe haven asset.
Seven Investment Management, for one, upped its gold exposure to its highest ever level in anticipation of a market correction.
On Tuesday morning alone, gold investment firm, The Pure Gold Company, reportedly saw a 113% uptick in the number of people purchasing physical gold compared to average figures last week.
It likewise noted a 78% increase in the amount of financial professionals investing in physical gold citing worries that equity markets and the dollar will continue to slip as the price of gold rises.
The number of first time purchasers also grew 87% as markets digested North Korea’s warning shot to global leaders.
“We have been taking orders since 5am this morning from clients citing fears that tensions between the USA and North Korea will escalate after North Korea’s latest missile test over Japan,” said CEO Josh Saul.
Saul added that over the last week, the group has seen a 91% increase in clients removing exposure to equities from within their SIPP or pensions and replacing it with physical gold exposure.
“President Trump has vowed to respond with ‘fire and fury’ and many of our clients believe this will make the situation considerably worse, increasing the unpredictability of the geopolitical situation.”
Source: International Advisor