The Pure Gold Company
The Pure Gold Company’s Josh Saul is quoted on ThisisMoney.co.uk following the Trump victory, describing the huge surge in business as the markets spasm.
By Jane Denton
- Price of gold rises to around £1,050 an ounce as Trump is elected
- Birmingham-based gold firm rakes in millions in early trading
Demand for gold from British investors has soared in the wake of Donald Trump’s election victory, as investors hunt out a safe haven amid market uncertainty.
One Birmingham-based gold wholesaler reported sales up tenfold on a typical day. ‘It’s gone nuts, absolutely bonkers. We’ve had an exceedingly good day’, Rob Halliday-Stein, the boss of BullionByPost said.
The price of gold has risen from £1,030 at midnight to £1,060 this morning as the Presidential election result became clear, before settling back to £1,050. The gold price has been as low as £821 in the last six months.
Mr Halliday-Stein took £1million in the first two hours of trading this morning, with demand still climbing this afternoon.
He said: ‘Trump equals more uncertainty, and normally that means it’s a good time to get into gold. We’ve done a good few million already, and it’s getting towards £10million.’
Meanwhile, The Pure Gold Company said sales had spiked 42 per cent compared to yesterday and the average order size has increased by 23 per cent to £13,000.
CEO Josh Saul said, ‘Our largest order so far today was £515,000 and the smallest was just £300. We’ve had a 32 per cent increase in purchases from new and first time buyers.
‘We’ve also had a 24 per cent increase in people looking to remove exposure to equities within their Pensions / SIPPS in order to purchase physical gold within the same vehicle.’
‘Unlike Brexit Friday, which recorded a record volume of £30.5m, trading has been very much one way, with buyers outweighing sellers by 3-to-1.
‘Brexit, the US election, Italy’s constitutional referendum – they aren’t the reason for gold’s 25% recovery in 2016. These events just give a focus to the underlying switch in the political, financial and investment backdrop.
‘If Trump proves to be the belligerent, high-spending protectionist that America just voted for, the underlying move in world gold prices looks set to keep rising.’
The World Gold Council this week said that in the three months to the end of September, total investment demand for gold increased by 44 per cent to 336 tonnes.
But total gold demand, which takes jewellery and purchases by central banks into account, dropped by 10 per cent compared with a year earlier at 993 tonnes.
In an update today, it added: ‘In our view, the intense political uncertainty that advanced economies now face, combined with the unknown aftermath of years of unconventional monetary policies (quantitative easing, zero and now negative interest rates) will make gold particularly valuable to investors in the coming years.
Fluctuations: Gold prices and stock market fluctuations , according to the World Gold Council
‘Gold is the only de-facto currency that cannot be debased by printing more of it, and the only one that does not carry political risk.
‘There is a reason why gold has outperformed every major currency throughout history.’
In the immediate aftermath of Trump’s victory, £37billion was wiped off the UK’s top listed companies as London’s FTSE 100 index fell by 2 per cent.
But the FTSE 100 recovered and is now up 0.09 per cent or 6.47 at 6,849.6p.
And defying all expectations of a rout on the open, Wall Street held firm with the Dow Jones trading up 0.07 per cent or 13.10p to 18,345.80p.
In currency markets, against the US dollar, sterling is down 0.01 per cent to $1.2370, but up 0.37 per cent against the euro at €1.1278.
Kathleen Brooks, of City Index, said: ‘The first speech by President-elect Trump has had a calming effect on the markets.
‘We have suffered a massive political shock but the markets are wondering if President Trump is less of a threat to America’s economy in office, compared to what he was during the campaign.’
Russ Mould, of AJ Bell also said the ‘conciliatory tone’ in Mr Trump’s speech helped cushion the blow on the FTSE 100, although investors still rushed to so-called safe haven stocks and assets, with precious metal miners Fresnillo and Randgold Resources among the biggest blue chip gainers.