SHARPS PIXLEY Sees Record Gold Sales

With London the global capital for trading gold at the wholesale level (with up to $60 bn in turnover each day), the opening of a bullion showroom in St James’s London seemed an obvious decision. Actually, it took some courage - as well as some expense. 

Unlike in Germany, gold is not the natural “go-to” for UK investors who have the privilege of having the world’s oldest currency (the pound is 1200 years old), economic stability and political stability (of a sort) … and we want you to buy financial insurance (???).

As such, opening a gold showroom in London was, let us say experimental, in the sense that it was unclear whether we could unhook British retail investors from their favourite asset, property. And yet gold has outperformed the average UK property by a factor of more than threefold since 2000 (gold up 550% while property up just 174%). Meanwhile gold is more liquid (5 minutes to sell a bar, 5 months to sell a property), it has lower costs (2% bid/offer spread on physical gold, 10% on say a buy-to-let) and gold can be CGT free … what is not to like. 

Sharps Pixley opened in early 2016 and between 2017 and 2018 we saw an increase in turnover of 70% year-on-year to £74m (gold sales plus purchases). More recently the business has seen record gold sales in June of £8.2m with July set for an all-time high at over £10m. 

It is clear that gold is starting to become recognised amongst UK investors as a reliable store of value ; we are not so sure it is recent political uncertainties that have been the spur. No question there is dissatisfaction with the current political environment, no question there are also doubts about both the economy and indeed some leading financial institutions too.

What has been missing has been a reliable and trusted source where both retail investors as well as HNWI clients can walk in and speak with a market expert about their options. That is to both buy it or sell it at competitive prices, store it in our on-site vault, take a safe deposit box and even have the gold assayed for proof of purity - well now you can.

Ross Norman

Sharps Pixley Ltd
54 St James's Street
London SW1A 1JT

24 Jul 2019

About the author

Ross Norman

Ross started his business career with business guru Sir Clive Sinclair of Sinclair Research in Cambridge, before joining Johnson Matthey as Gold Refining Manager (then the worlds largest gold refiners), then as a gold trader at NM Rothschild & Sons (the Chairman of the London Gold Fixing) and later Credit Suisse, where he was a Senior Dealer in physical bullion trading.

Ross has an enviable record within the London Bullion Market in forecasting the gold price over the last decade and is frequently sought by the media for commentary on the bullion markets. Ross has made frequent appearances on TV (BBC, CNBC, CBC) in newspapers (FT. Wall Street Journal) as well as in the newswires (Reuters, Bloomberg and Dow Jones).