Brits Pouring Over Half Their Net-Worth Into Buying Gold Post-Brexit

blog-post-brexit

 

 

July 20th 2016
www.commoditytrademantra.com

And the United Kingdom has been thrown into a sea of uncertainty in the wake of the Brexit vote. So what are the British people doing?

Buying gold.

According to a Reuters report, gold dealers in the UK report an extraordinary interest in gold post-Brexit – much of it from first-time buyers. The Pure Gold Company CEO Joshua Saul said British customers are pouring large portions of their wealth into the precious metal:

“The speed at which people are buying gold is unprecedented. We are seeing people convert as much as 40 to 50% of their net worth into physical gold, (compared to) 5 to 10% in the past.”

The British Royal Mint also reports a surge in business with a 7-fold increase in the sale of 100-gram bars. A spokesperson for the mint said “This shows little sign of declining,” noting that half of the buyers opted to store their purchased metal in its vaults.

London-based trading platform Bullionvault.com said some 4 million pounds ($5.5 million) in gold and silver were traded in the weekend after the Brexit vote. The number of first-time buyers on the site increased 170% in late June and into the first week of July.

The sudden surge in gold sales is more remarkable considering the British historically haven’t shown as much interest in the yellow metal as residents of many other countries. The UK ranks 15th in the world in gold bar and coin sales, according to Reuters:

Countries like Germany, with its experience of hyperinflation, have maintained a historical connection to gold as a tangible asset that can protect wealth against economic downturns and currency fluctuations. German consumers buy more than 100 tons of gold coins and bars a year, and spent around $4.6 billion on gold in 2015. British interest in gold, by contrast, has been lukewarm in modern times because of the pound’s role as a global reserve currency, even when sterling was tested by crashing out of the Exchange Rate Mechanism (ERM) in 1992.”

It’s clear the uncertainty surrounding the Brexit vote has driven the Brits to seek the safe haven historically offered by gold. Adam Cleary was ahead of the game. He bought gold before the vote, anticipating economic chaos in the aftermath of Brexit. But he offered an even more poignant reason to buy gold– he doesn’t trust the banking system:

Gold cannot be canceled, it cannot be confiscated, it cannot be taken away.”

blog-post-brexit

The Pure Gold Company CEO Joshua Saul said British customers are pouring large portions of their wealth into the precious metal

< Back to Uncategorised

Related entries

  • US Airstrikes and Trump’s Failed Promises: Gold Price Rising with Global Uncertainty

    The Pure Gold Company 25/04/2017 Donald Trump’s presidency continues to influence the gold price and provide something of an argument in favour of gold investment, as his constantly erratic and unpredictable government’s recent movements on the world stage stoke further tensions with various international players. The price of investment gold climbed sharply to a high of...Read more >
  • Reasons to Invest in Physical Gold 2017

    The Pure Gold Company 07/02/2017 By Joshua Saul That time of year is upon us yet again, during which analysts and experts from the world are requested to make market predictions for the coming twelve months. While prices saw a dip in the closing weeks of 2016 they haven’t yet reached the multi-year low in...Read more >