Brexit Causes Gold Sales To Boom In UK
Sales of gold bars and coins are currently booming in the UK, as British investors look for traditionally safe forms of investment during an uncertain Brexit.
British gold firm The Pure Gold Company reported this month that they have seen a 62% increase in people investing in physical gold compared to the expected average for 2018. This is excellent news for anyone who wants to invest in gold – although the boom isn't a big surprise to most investors, who predicted a UK gold boom last summer.
Why The Sudden Interest In Gold?
London gold store St James also saw a staggering 253% increase in gold sales this year, showing that all across the UK investors are flocking to gold. Sales at Sharps Pixle, another gold store in London, also saw sales reach over £9 million during March 2018, which is a huge increase from £2.5 million in March 2017. In fact, March 2018 saw a record breaking level of gold sales for the store.
But why the sudden interest in gold? It is because physical metals like gold and silver are a great investment during times of political instability; the price of silver and gold doesn't show anything like the major price fluctuations of other investment options, and they tend to hold their value well. This is relevant right now as many British people are nervous about the long term effects of Brexit, so they want to invest in reliable assets.
Brits Want To Hedge Their Investments
Many of the investors are financial professionals who are trying to hedge against the possible risk of overall global stock declines. There are many reasons for this: a shaky Brexit, general uncertainties over US policies, tension between the US and Russia and the possibility of a trade war with China. All of these issues create political instability, so many investors are trying to use gold as a hedge against risk. This means that they are adding to their portfolio in the hopes that if one of their other investments decreases in value, the rising gold price will help to cover the losses.
Gold sales are soaring in the UK now, reflecting the fear and uncertainty that many British people feel about Brexit. This shows how investors view metals as a safe and reliable investment, even during turbulent times.