The Pure Gold Company
The Pure Gold Company featured in today’s Wall Street Journal commenting on the rise in gold buying as investors seek a way to protect their finances from the Brexit turmoil. At times gold has been trading as high as $1336.60, hitting record highs.
By Ese Erheriene and Jasmine Horsey
Gold prices rose for the second day in a row on Monday, spurred by concerns over what Britain leaving the European Union will mean for the political and economic landscape.
Gold for August delivery settled up 0.2% at $1,324.70 a troy ounce on the Comex division of the New York Mercantile Exchange, paring some gains after trading as high as $1,336.60 earlier in the session.
On Friday, 51.9% of Britons voted to leave the 28-nation trade bloc, versus 48.1% who wanted to remain.
The leave vote represented a startling rebuke to the establishment and threatened to spark political turmoil in the U.K. and more widely across an increasingly fractious eurozone. Investors flocked to buy the metal, which is viewed as a safe-haven in times of market apprehension.
“There’s a lot of uncertainty around, and it’s not surprising there’s been a pickup in safe-haven buying,” said William Adams, Head of Research at Fast Markets Ltd. “Until there’s less uncertainty I think bullion prices will be supportive.”
On Friday and over the weekend, investors piled into gold in search of a safe place to store their cash as the shock of the referendum results saw global markets descend into chaos.
Users of London-based online bullion platform, BullionVault, traded over $13.7 million in gold by 6.30 a.m. U.K. time on Friday, setting a one-day record by midnight. On Saturday and Sunday, 2,766 trades were executed, including some investors taking profit.
“Our users bought a lot of gold going into this crisis, and some are selling to bank substantial profits from Friday’s shock,” said founder and chief executive Paul Tustain.
Elsewhere, fear of a so-called Brexit encouraged demand from investors with little or no experience of financial markets. Gold investment firm The Pure Gold Company has seen a 69% increase in first-time investors, including teachers, doctors and retirees.
“We’ve had people abandon plans to buy properties and other investments and to stick their money into gold,” said chief executive Josh Saul.
Source: The Wall Street Journal