Case Studies: Who and why do people purchase physical gold?

shutterstock_436006471-670x484

 

The Pure Gold Company

08/10/2016

Solicitor abandons property purchase to purchase physical gold

Mark, a 42-year-old solicitor from London wasted no time in purchasing physical gold at the expense of pulling out of his property purchase two days before exchange. He invested £350,000 in physical gold from The Pure Gold Company and will wait out the post-Brexit economic storm in the hope that property prices will fall.

“We were two days away from exchange of contracts. We had secured our mortgage, conducted our valuations and surveys, and we had even paid a small holding deposit, which we will now forfeit,” he says.

“I think we have already seen a correction [in the property market]. People are just not buying and therefore if sellers need to sell they need to significantly drop their price. In a year I predict (or hope) UK property prices will be 20 – 30% lower.”

“I am concerned for our country both in terms of politics and economy but I am more worried about my family’s wealth and how this may affect our investments.“

“We don’t feel comfortable keeping more than £75,000 in the bank and the last thing we would do is gamble on the stock market. Physical gold seems like the safest option. Furthermore if we do decide to purchase a property and need our funds quickly then we know that we can liquidate within hours.”

Surrey teacher fears Greek-style bank collapse

A Surrey teacher, 36, was persuaded to invest £15,000 of her savings in physical gold by a Greek aunt caught in the fallout of the run on the Greek banks last year. She bought UK gold sovereigns from The Pure Gold Company who guided her through the process of how to invest in physical gold, and will take delivery of the gold rather than have it stored.

“I have no plan to sell but I would like to buy a flat and the current economic situation has scared me away from doing that,” she says.

“The hysteria reminds me of 2008 and the fear is that we see a repeat of what we saw in Greece last year when people couldn’t access their savings. I don’t have much money but the money I do have, I want to ensure it’s safe. Most importantly I want to be able to access my money and with physical gold one can liquidate quickly.”

I am not really an investor and much of the “market” or “economy” talk I find boring. However for the first time I realise that most of what is happening will affect my livelihood. Most people I know are talking about gold and lots have bought which made me consider it as an investment. Everyone is talking about 2008 and the similarities between then and now. Physical gold was the only safe investment back then so I’m thinking that going forward it will also be the only safest option.”

Yorkshire Teacher buys gold after pension loss

Grace Hall, 49 and her husband, both teachers from Yorkshire, saw a large chunk of their pension wiped out in the aftermath of the Brexit vote, and decided to invest in physical gold for the first time as a means of protecting their remaining assets. “We had a sum of cash in ISA’s earning little to no interest and we would rather have less exposure to the banks,” she says. “We’re both worried about bank failures and our cash getting swallowed up. We’re also worried about our pension and are taking steps to see if we can invest part of them into physical gold. I’m worried about our kids’ jobs and their future.”

Grace bought just under £25,000 worth of physical gold from The Pure Gold Company the day after the Brexit vote, choosing to invest in Britannia’s and UK sovereigns, both of which are capital gains tax free.

“My husband has a brother that bought gold during the last crisis of 2008 and he thinks that the gold price will have the same effect as it did during the last crash. Personally hearing what all the parents are saying at school, our friends, family and most people we speak to – things seems to much worse and more similar to the 90’s crash.”

Developer fears property crash, swaps houses for gold

London developer Mark, 42, has put any further property purchases on hold since the Brexit vote and has instead invested £350,000 in physical gold to protect himself from a potential property crash.

“I actually contacted The Pure Gold Company as I saw them featured in an article about someone burying gold coins in their garden and I had the same coins so I was interested to see how much I would get if I sold them. After Brexit, I’ve been encouraged by my friends and family, who have also invested in gold, to follow suit and buy gold myself. I just wish I had bought before the referendum instead of dragging my feet.”

Fears about a property crash have put the brakes on several projects. “Business has been very quiet. The last thing I would do right now is buy another property and this is a difficult realisation for me as this is how I earn my living.”

“I’m worried about my property portfolio collapsing! I’m worried that I won’t be able to retire and live in another country as our currency becomes weaker and weaker. I’m worried about the banks who can’t be in a good situation.”

Mark is just as concerned about the volatile stock market and doesn’t want to risk investing there. “Purchasing physical gold seems like the safest option and the closest option to having money in the bank but with less risk and no counter party risk. “

Single Mother buys gold to protect children’s future

Joanna, a single mother to three boys in Brighton, is worried about the banks, the property crisis and what Brexit means for her children’s future. “I’ve never seen times like this and it worries me in so far as my kids are concerned. I am not sure what much of this all means and even the referendum was complicated but I can tell when people are scared and panicked and now I can see why.”

Joanna, who’s late husband used to purchase gold in the 90s, invested in physical gold with the Pure Gold Company the Monday after the Brexit vote. She would rather pass the gold onto her children than money, which she worries is becoming worth less every day.

“I wouldn’t call myself an investor and I don’t know a much about financial markets but I have to be responsible for our family’s finances as I’m on the only adult. I haven’t bought gold to make money or get rich. What’s important to me is that I wake up in the morning and my wealth still exists and more importantly it’s obtainable. The Pure Gold Company, where I purchased my gold, have also highlighted the process in which I am able to sell which seems quick and easy.”

Suffolk surgeon surprised by Brexit volatility, buys gold to preserve capital

Steven, a 38-year-old surgeon from Suffolk, bought gold in the downturn of 2008 and has returned to the physical gold market the day after the Brexit vote.

“The panic now (rightly or wrongly) seems to be greater than when we bought in 2008. I didn’t expect or comprehend that there would be the amount of global volatility we are witnessing at present. It does make me wonder about my [voting] decision but there is always going to be the rough to encounter when trying to obtain the smooth.”

Having bought before, Steven knew how to invest in physical gold, but doesn’t see it as an investment, rather as a store of wealth. “I hope it grows but my underlying motivation is capital preservation. I have little faith in bank viability and the safety of our money. I would much rather have a portion of my net worth in something that is physical, tangible and in something that tends to move up in value in times of uncertainty.”

Essex financial consultant Laura Dellow hedges her bets with gold

Laura Delow, 59, a semi-retired financial consultant and her retired husband Simon, 65, invested £40,000 in gold sovereigns in February 2016 as a hedge against their other assets. The couple, from Chigwell in Essex were concerned about the stability of the banks when they bought physical gold from The Pure Gold Company in February, and are considering buying more in light of the Brexit vote.

“Over the foreseeable future I see gold rising considerably because of global economic and financial instability, in particular with banks,” Laura says.

But she isn’t worried if the price does fall. “If in the foreseeable future gold went on a downward trajectory, I would be delighted as it would mean greater financial stability and as a result our other investments should hold strong or grow in value.”

Laura and Simon have also invested in SIPP stocks & shares, Insurance investment Bonds invested primarily in equity funds, premium bonds, cash ISA’s and a property portfolio.

They chose to buy gold sovereigns as these are capital gains tax exempt, and the gold is held in vaulted storage through The Pure Gold Company. “Trust is an important factor for both of us and as such we would only use a reputable UK gold dealer with an impressive track record. That’s why we have only ever dealt with The Pure Gold Company in London where gold is purchased online but you get your own relationship manager,” says Laura

shutterstock_436006471-670x484

"I am concerned for our country both in terms of politics and economy but I am more worried about my family’s wealth and how this may affect our investments"

< Back to How to Buy Gold