The June 23rd, 2016 vote by Britain to exit its membership in the European Union triggered an increment in the prices of precious metals such as silver and . This rise in the prices of precious metals was triggered by the need for individuals to secure their financial interest and those of their families. As such, people like Grace Hall, a Yorkshire teacher, used a portion of her life savings to invest in gold after the UK sterling and stocks dropped.
Individual Purchase of Gold in the UK
The case of Grace Hall is analogous to that of many other persons in the United Kingdom, who expressed their uncertainty and worry pertaining the banking situation. Further, precious metal dealers in the UK also witnessed a rise in the interest in gold, especially from first-time buyers. This situation was mainly catalyzed by the need to secure a safe haven for an uncertain future that would accompany the Brexit aftermath.
Statistics Presented by Gold Experts
The Pure Gold Company
The Chief Executive Officer of The Pure Gold Company, Joshua Saul, told the Fortune that the rate of gold purchase was extraordinary. During the interview, Mr. Saul revealed that The Pure Gold Company witnessed a situation whereby individuals were converting approximately 40-50% of their net value into physical gold form.
Royal Mint, a government-owned coin and bar producer, also experienced a 70-fold increment in the sales of the 100-gram bars in a duration of two weeks after the exit. The 100-gram can be compared to a half-sized credit card, which costs about $4,400.This situation triggered the company to mint the £20 gold coin in a bid to take advantage of the gold rush.
The Bullionvault.com, a London-based trading platform, also revealed that about 4 million pounds of silver and gold were traded via online means on the weekend of June 25-26. This situation was equated to seven times the average weekends of the past 12 months. Further, the number of novice UK gold buyers rose by an estimate of 170% in both June and July’s first week in comparison to the daily average of the previous 12 months.
The current situation in Britain is not new. Britons have in the past showed a high interest in gold during the global financial crisis of 2008. However, the interest quickly diminished. This time round experts indicate a different scenario, as many of the gold buyers have stored their precious metal in the Royal Mint’s vault.