By Rosie Murray-west
WHEN the global outlook becomes really uncertain, many people turn to gold as the ultimate ‘safe haven’ asset.
There was a 74 per cent spike in gold sales on the day of the postponement of the ‘meaningful vote’ on Brexit. Unlike currencies, no-one can print more gold, and the price tends to rise when the global situation becomes tense.
The Pure Gold Company says that its clients, in a ‘high state of anxiety’ about Brexit, rush to gold. However, buying now comes at a price, because the metal already looks expensive when times are tough.
The price is very volatile, reacting to everything from the price of the US dollar to trade talks or natural disasters.
There are many ways to buy gold, including buying physical bars and hiding them under the bed. There is even a gold vending machine at Westfield shopping centre in west London. However, if you have gold at home it will weigh heavy on your insurance policy.
It’s more sensible to buy gold from a reputable company such as BullionVault, which will also store it for you in Switzerland.
You can get exposure to the gold price in other ways such as buying shares in gold mining companies or by using exchange traded funds. However, be aware that the price of these does not always completely mirror the gold price.
‘Our investment has nothing to do with the UK economy’
DISILLUSIONED by Brexit, Laura and Simon Delew decided to invest in something that had nothing to do with the UK economy. The couple, 62 and 67, chose to buy £40,000 worth of gold from The Pure Gold Company.
‘We knew the road ahead was rocky,’ says Laura, who has retired from the financial services industry. ‘The global landscape is unpredictable and we anticipate this will continue, if not be worse than the last ten years.’
The couple has investments in London property, as well as stocks and shares. Laura says the gold is needed as a hedge against the poor performance of ‘UKplc’. ‘We’re no longer seen as a world leader on the global stage and, sadly, British people, in general, are disengaged,’ she says.
‘The only prediction that will come true is that no prediction will come true and therefore if experts can’t call it right, we need gold as a permanent hedge. I just wish we had more.’
Source: Metro
