Gold Demand Up

Gold Demand Up.

The Royal Mint has confirmed that demand for Gold is up, with Gold prices up by nearly 50%, in sterling terms, since the start of the year.  The rise is not just because the £ is 20% weaker, it is also general demand with economic uncertainty and lower interest rates.

When taking sterling out of the equation and using $ only, gold prices are sill 25% higher on the year.

We know Bank of England central bank interest rates have been cut to just 0.25%pa meaning even lower returns on bank savings deposits.  Gilt yields are low and many investors have surprisingly did bought stock markets for dividend return, despite the inherent risks of that.

Given that the Royal Mint is now also making Gold Bullion, bars and coin available to pension fund investors, it is no surprise as people look for safe haven investments that Gold is up.  We suggested late last year and indeed in the run up to the Brexit vote that Gold was possibly a suitable safe haven.