SHARPS PIXLEY Sees A 252% Increase in Physical Gold Demand
(June 9, 2017 - by Ross Norman)
The elections leading to a hung parliament in the UK have seen a rush into physical gold by investors, as the country slips into a political vacuum. The uncertainty both in the UK and indeed geopolitical concerns across the globe have fed into firmer gold prices which have risen 11 pct so far in 2017 in international markets.
Sharps Pixley opened a bullion showroom in St James’s, London in early 2016 where clients can now readily buy, sell, test and store physical gold.
Sharps Pixley report they have been inundated with investor interest with a 252 pct increase in gold demand year-on-year (May 2016 vs May 2017) ; the business has run out of some bullion products and they are again flying in fresh metal from Switzerland and Germany in order to replenish stocks. In the June month-to-date they are on track to break all records.
Speaking of the physical demand, Ross Norman, the CEO of Sharps Pixley commented "Sharps Pixley is the first business on the high street to make physical gold readily accessible and prominent - in our first year of business we have attracted about £40m of client interest ; the current bout of buying however is exceptional and the uncertainty surrounding UK politics has prompted a rush to safe haven assets". He added "a sharp decline in sterling is a big win for British gold buyers and only today the price has risen above the important £1,000 per ounce level."
Interest in product types is across the board, with kilobars (priced at £32,800), Britannia’s (priced at £1,042) and even one gram bars (prived at £40.00) seeing exceptional demand, underscoring the wide range of investor interest to protect themselves.
"Physical gold is not just for the privileged few and the breadth of demand demonstrates that it remains a fantastic way for ALL investors to protect their wealth. Gold in sterling has risen by 470% since 2000, that’s over 11 pct a year compounded - that’s about three times the average UK property over the last 16 years" enthused Norman. In addition, investments are devoid of VAT and can be capital gains tax free and the difference between the buying and selling price is competitively priced ... why wouldn’t you invest ?"
In short, physical gold may be a "minority sport" but it has certainly demonstrated a track record in serving investors well.
