Physical gold sales have increased 68% in the last week at investment firm The Pure Gold Company in the run-up to tomorrows’ UK general election, as current British prime minister Theresa May’s lead has narrowed.
Concerns regarding cyber attacks, further terrorist attacks following the recent atrocities in Manchester and in London and the market uncertainty surrounding the UK’s general election result tomorrow, has led to investors in gold moving even more funds into this area, The Pure Gold Company said.
Despite opinion polls pointing to a narrow Theresa May victory in tomorrow’s vote, similar polls predicted a Hillary Clinton victory in the US election and a Remain vote in the UK Brexit referendum, many believe that a Jeremy Corbyn led Labour victory is now possible, something that Josh Saul, chief executive, at The Pure Gold Company, says that is concerning investors.
He points to a similar pattern, when on June 24, 2016, gold increased 24% over a 12-hour period following the unanticipated Brexit result, despite polls reflected otherwise.
First time investors
“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,” said Saul.
“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 SA for 1 Euro has increased contagion worries within the banking sector, which is encouraging clients to purchase more gold.”
He added that the company has also 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,” he said.