The Pure Gold Company
Josh Saul is quoted in Portfolio Adviser on the potential effects of the snap General Election on the gold price and the Sterling.
Gold sales have soared in the past week after doubts over Theresa May’s ability to win the election, coupled with an increased terrorist threat.
Fears of a victory for Labour under leader Jeremy Corbyn spurred a 68% increase in physical gold sales through investment firm The Pure Gold Company.
Company chief executive Josh Saul said his clients had raised concerns a surprise Corbyn win could threaten national security, hitting equity markets and sterling hard.
Saul said: “While the polls reflect a May victory, similar polls predicted a Hillary Clinton victory and a remain vote in the UK Brexit referendum, and our clients remember how that turned out.”
The number of people investing in gold for the first time rose 64%, citing fears that a further terrorist attack could cause a marked increase in market volatility, Saul added.
“People are preparing for the unexpected,” he said.
“We have seen a 49% increase in financial professionals purchasing physical gold to hedge themselves against the expectation of short-term volatility, counterparty risk and the possibility of sterling dropping in value following a potential Corbyn victory.”
The sale of Banco Popular Espanol for one euro has also increased worries of contagion in the banking sector, prompting investors to plump for what is seen as a safe asset, Saul added.
Source: Portfolio Adviser