SHARPS PIXLEY : Gold Rockets 20 Pct
Gold rocketed this morning as the shock UK referendum result saw carnage in financial markets, prompting a rush to safe haven assets like gold. With sterling falling to its lowest in 30 years, the biggest gains were seen in gold for UK investors which rose 20 pct in just a few minutes before settling this morning at gbp 960, a gain of 12 pct on the day so far.
At Sharps Pixley we have already seen our busiest day ever with online sales draining our stocks of our larger bullion bars and prompting us to call on emergency reserves of kilobars from Germany. Our stocks of many coins have also been sold out with only limited availability today.
Stocks of physical gold for retail investors in small denominations are normally quite modest in the UK compared to markets like Germany where gold buying is more commonly adopted by savers. We have had to call on our parent company in Germany, Degussa (said to to be the largest in Europe in the sector) to help us out with additional bullion. Germans are a cautious people with not only gold reserves owned by the Bundesbank about 10 times the size of the UK Treasury's very modest 310 tonnes (just a little more than Lebanon's gold reserves - thanks Gordon) - but Germans have 4 times the propensity to save compared to UK savers.
Speaking of the gold rush Ross Norman, CEO at Sharps Pixley said "gold has done what it does best and that is to provide investors with protection against currency weakness and political uncertainty- it is a safe haven asset with wealth preservation properties - the prescient investor has been well rewarded by his caution. We have always cautioned against betting on gold for short term outcomes, but over the long term it does what it should and that is to provide people with financial insurance."
Sharps Pixley anticipates fresh stock of bullion next week and to welcoming new clients who are intersted in discussing precious metals holdings and indeed storage in our secure location as well as at our overseas vaults.
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24 Jun 2016 | Categories: Gold