Nuclear fears spark another gold rush

Across all buyers, the average amount of gold purchased has gone up 22% this week to £9,760.

Investment firm The Pure Gold Company has seen a 69% increase in first-time buyers purchasing physical gold over the past week.

across all buyers, the average amount of gold purchased has gone up 22% this week to £9,760.

Nuclear fears spark another gold rush

These new buyers of gold are citing concerns over the escalating “war of words” between North Korea and the USA, and heightened fears of outright war. Simmering tensions with Iran have added further insecurity to an already fragile geopolitical situation.

Across all buyers, the average amount of gold purchased has gone up 22% this week to £9,760.

The Pure Gold Company CEO, Josh Saul, said: “Notably, we’ve also seen a 78% increase in financial professionals purchasing physical gold. While they cite similar geopolitical motivations, they are also concerned that the lack of support for Angela Merkel during the German elections has and will add a fresh bout of uncertainty to financial markets.

“Furthermore, some investors fear that a rate hike in the US and UK may trigger a debt explosion, with a significant amount of people not being able to afford their mortgages and other debt. Even Transport for London’s decision not to renew Uber’s licence in London may exacerbate this problem, with some of the thousands of drivers more likely to default on car loans.

“Consequently, we’ve seen financial professionals and first time purchasers take advantage of a lower gold price (over 6% below its 2017 peak earlier this month), and as the equity markets have fallen and currency volatility has increased, the gold price has started to rise again.”

The highest price per ounce of gold over the past year hit £1,060.08; the year’s lowest price was £903.81. The current price is around £969.80, according to BullionByPost.

Gold as an Investment to Equity Release

Is it worth buying gold as an investment? Gold can be a good investment asset to have as part of a balanced portfolio​. Gold boasts some of the highest liquidity in the commodity markets and has more often than not increased in value over time.

Editorial Note: This content has been independently collected by the EveryInvestor advisor team and is offered on a non-advised basis. EveryInvestor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.
Taylor Holt - 300x300

Written by
Taylor Holt
Estate Planning Expert

Taylor Is Our Resident Estate Planning Expert. He Knows That Everything Revolving Around Wills or Funeral Planning Can Be a Sensitive Subject That People Don’t Like to Discuss. But He Also Knows How Important It Is to Know All There Is to Know About It. Taylor Makes It His Mission to Spread Awareness About Estate Planning, and We Believe Everyinvestor Is the Best Platform to Do That.

Monique - 300x300

Written by
Monique Pittman
Pensions Expert

Monique Is Our Resident Pensions Expert. Many People Postpone Planning Out Their Pension, Thinking That Is Something They’ll Have to Worry Much Later in Life. Monique Knows How Important It Is to Start Planning Your Pension Early, and She Wants You to Know It Too!

Written by
Lisa Schilling
Insurance Expert

Lisa Is Our Resident Insurance Expert. She Knows How Important It Is to Be Ready for Any Scenario, Especially When a Family Member Is Involved. Nobody Likes Being Found Unprepared in a Tough Situation! Lisa Can Find the Best Insurance to Cover Your Every Need, Present and Future.

Doyle Edwards - 300x300

Written by
Doyle Edwards
Mortgages Expert

Doyle Is Our Resident Mortgages Expert. He Comes From a Long Line of Financial Gurus, and It Truly Shows. Despite His Young Age, There Is No Question He Cannot Answer When It Comes to Mortgages, and His Ability to See Outside of the Box to Find the Best Mortgage Deals Is Truly Impressive.

jason stubbs 300x300 1.jpg

Written by
Jason Stubbs
Equity Release Expert

Jason Stubbs Is a Specialist in the Equity Release Sector. He Enjoys Helping Older People Who Are Struggling Financially Get Out From Under Financial Pressure.

rachel w.jpg

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
Mark Patterson

Written by
Mark Patterson
Mortgage Expert

Mark Patterson is a well-known expert in mortgages. He has been working as an expert for over 15 years, and he specializes in the UK mortgage market.
kath icon.png

Katherine Read
Consumer Affairs Writer

She writes on the topics of equity release, home reversion, and mortgages.

Nicola Date

Nicola Date
Writer & Journalist

Nicola is a financial writer for EveryInvestor and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.