Crypto crash and Carillion fears spur UK gold sales

Fears over a possible cryptocurrency crash and the uncertainty sparked by one of the biggest ever company liquidations are cited as key reasons gold sales have jumped at The Pure Gold Company, a UK provider of investment services.

PGC said it saw a 42% increase in first time investors buying gold so far in January compared to the same period a year ago. Possible drivers additionally to the crypto crash fears include geopolitical tensions and uncertainty over Brexit, leading to ‘safe haven’ sales.

The collapse of one of the UK’s biggest construction companies in recent days has not helped local confidence in risk assets, suggests Josh Saul, CEO.

“The collapse of Carillion this week has impelled financial services professionals to buy gold in greater numbers too. We’ve seen a 69% rise in sales to people in finance citing fresh concerns over systemic risks caused by the collapse of the UK construction giant. More specifically, sales to investment bankers have risen 32% this week amid fears that businesses connected to Carillion, especially the banks, could be affected by the large amount of debt that is unlikely to be repaid.”

“The expectation of another interest rate rise this year, against the backdrop of record debt and millions of people who, until November, had never experienced a rate rise before, is fuelling worries that people may have to sell property to pay unaffordable mortgages and debt.”

“Our clients aren’t purchasing physical gold with a short-term view to making an immediate profit. It’s more about protection and wealth preservation during uncertain times. Many of our clients see it as a financial insurance policy that tends to increase as political, economic and monetary risks escalate. Looking ahead, these risks aren’t likely to abate substantially, prompting more people to look for a safe haven for their assets.”

 

ABOUT THE AUTHOR
Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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