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.
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