BullionVault.com, one of the world's largest physical online gold and silver markets, has seen an increase in the amount of larger investors turning to gold in the UK.
In the case of gold specifically, the average purchase size amongst customers depositing GBP100,000 or more is now 26 per cent greater by weight so far in 2015 from the 2014 average, and 20 per cent greater than the same period last year. UK residents have made 40 per cent of 2015's larger deposits to date, but accounted for only 27 per cent during the same period last year.
But it’s not just big ticket investors where BullionVault is seeing growth. The total number of deposits from clients wanting to buy gold or silver has risen 4.4 per cent year-to-date from the same period in 2014.
BullionVault’s holdings now stand at a record 33.7 tonnes, 0.9 tonnes greater than the beginning of the year and more than most of the world’s central banks hold. BullionVault’s user holdings have risen 140 per cent faster so far in 2015 than during the first 5 months of last year.
Based on data from the World Gold Council's latest Gold Demand Trends, the net addition to BullionVault clients' gold holdings during the first quarter of this year equated to 0.9 per cent of private investors' gold bar and coin demand across Western Europe and North America.
BullionVault’s services are used by a wide array of customers, of which 85 per cent are entirely self-directed in their investment decisions. A quarter (27 per cent) holds between 1-10 per cent of their investable wealth in gold or gold-related assets whilst a third (36 per cent) holds between 10 per cent and 30 per cent. Only 1-in-5 holds 50 per cent or more.
Adrian Ash, head of research at BullionVault.comm says: "While we're seeing a broad-based upturn in private investors buying physical gold so far in 2015, there's a notable increase in activity amongst larger accounts, and it's being led by UK investors.
"Anxiety over the Election clearly added urgency to buying gold in early spring. Deeper concerns remain over Sterling, the value of Gilts, and the twin deficits of government and the UK's current account with the rest of the world.
"For investors wanting to reduce risk without denting returns, historic data supports an allocation to gold. In our experience financial advisors rarely consider gold for their clients. But such diversification clearly makes sense to private investors who choose to research and make their own decisions. Analysis of historic data supports their choice.