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Gold bar sales up 600 per cent as no-deal Brexit looms

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The Pure Gold Company has seen a 632 per cent increase in people purchasing physical gold bars and coins over the last week, compared to the weekly average for 2019. 

The firm says buyers are racing to secure the precious metal because they fear the combined effects of a possible no deal Brexit and the ongoing trade war between China and USA will lead to a global crisis. 

Josh Saul, CEO of the gold investment firm, says: “Boris Johnson shutting down parliament has shattered any real hope that the country could leave with a deal and has fragmented UK politics even further. August is usually one of our quieter months, but so far it’s been our busiest for 2019. We’ve employed more staff to deal with the overwhelming amount of panic stricken investors and most of our consultants are taking orders from 6am until 10pm. The speed at which people are purchasing is similar to 2007/8 after the collapse of Northern Rock and Lehman Brothers. 

“We’ve seen a 134 per cent increase in financial professionals such as bankers, hedge fund managers and financial advisors investing in gold and purchasing gold bars and coins this week. They believe a market crash is inevitable and will significantly affect global equities and property. Recent indicators also suggest a US recession may be looming. The bond yield curve is inverted at its lowest level since 2007, and this market phenomenon has preceded every US recession for the last 50 years. The market gloom is being fuelled by the trade war between the US and China which shows no real signs of abating. Almost half of financial clients have said they are concerned about access to investment funds as more people withdraw their assets, This could lead to suspensions similar to the Woodford debacle that would make it difficult for people to get their money out. 

“We’ve also had a 242 per cent increase in the amount of first time investors such as teachers, engineers, bus drivers and civil servants purchasing gold this week. They’re concerned about the safety of their cash in bank accounts and the vulnerability of some of our UK banks. Given that interest paid on savings accounts is so low, some are now worried that UK banks will start charging us to keep our money – something that has already happened in Denmark and Switzerland. 

“We’ve seen a 387 per cent increase in the amount of people removing exposure to equities and bonds within their pensions or SIPPs to purchase physical gold within the same vehicle. Retirees cannot afford to wait years for their pensions to recover if equity markets fall substantially as they did in the 2008 financial crisis, and they are therefore removing exposure while they can. 

“Our clients are not necessarily looking to purchase gold to make money (although the gold price has risen by almost 30 per cent in three months). It’s more about safety and security in an asset class that is physical, sits outside the banking system and has a proven track record of increasing (while other asset classes fall in value) in times of uncertainty.”

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