Josh Saul, chief executive at The Pure Gold Company, comments on the 68% hike in physical gold sales last week, in the run-up to Thursday’s UK election, as Theresa May’s lead has narrowed.
Some of our clients are concerned that if Jeremy Corbyn wins the election then national security will be threatened which would negatively affect the financial markets including the value of sterling and the stock market.
While the polls reflect a May victory, similar polls predicted a Clinton victory and a remain vote in the UK Brexit referendum, and our clients remember how that turned out.
On June 24th 2016, gold increased 24% over a 12 hour period following the unanticipated Brexit result despite polls reflected otherwise.
We’ve seen a 64% increase in people investing in gold for the first time, citing fears that a further terrorist attack will add uncertainty to an already volatile market.
People are preparing for the unexpected. 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.
Moreover, the sale of Banco Popular Espanol for €1 has increased contagion worries within the banking sector, which is encouraging clients to purchase more gold.
The Pure Gold Company have witnessed a 62% increase in retirees purchasing physical gold. Some of them are worried about the threat of cyber-attacks on bank accounts like that of Lloyds bank in January, and following on from the widespread cyber-attacks in May.