Coronavirus Effect results in 846% Increase in People Purchasing Gold Bars and Coins

The Pure Gold Company has seen an 846% increase in people purchasing physical gold bars and coins this week, compared to the weekly average over the last year, citing systemic fears and uncertainty over the coronavirus outbreak.

Gold investment firm CEO, Josh Saul, said: “Over 67% of sales have come from first time investors. They’ve watched businesses like Flybe collapse under the pressure of the coronavirus effect, and along with the repercussions of unemployment, they believe there are other businesses that are likely to follow suit.

“In a survey carried out at The Pure Gold Company, over 43% of clients who work in hospitality, retail and the service industry said they have seen turnover slide 30%. Meanwhile clients who work in large scale events including concerts are cancelling plans over the short to medium term. Many believe that these are the ingredients for a recessionary environment that could very well spiral out of control. It’s simple – if people believe they need to conserve money, they spend less and it becomes a self-fulfilling prophecy.

“Our clients are watching the stock market seesaw and businesses underperforming, and they’re turning to gold as an obvious solution to the uncertainty. Gold has a track record of increasing in value while currencies, equities and confidence fall amidst the uncertainty. The gold price has risen almost 9% in the past 30 days so clients who bought earlier in the year will have seen their portfolio grow quickly over this time. That said, our clients are not purchasing gold to make money. It’s more about protection during times of unpredictability, ensuring the value of their assets isn’t eroded by market declines.

“Some of our professional clients have suggested converting their gains in gold over the more medium term. They want to be able to invest in potentially undervalued asset classes like equities if the opportunity presents itself. The liquidity of gold (it can be converted to cash within 24 hours), enables them to make these investment decisions quickly.

“We have seen a 523% increase in retirees removing exposure to equities within their SIPP / Pension to purchase physical gold bars within the same vehicle. These clients are very concerned that the coronavirus has the potential to wipe out the value of their retirement pot and are being proactive to protect their assets.

“We’ve also had a 213% increase in ultra-high net worth individuals purchasing physical gold from The Pure Gold Company on recommendation of their own professional advisors who have stated it’s the only asset class immune from coronavirus and the underlying uncertainty of Brexit, US elections and various tensions around the world.”