GOLD RUSH: British investors rushing to buy gold over fear of global stock market CRASH

Wednesday, January 16, 2019
By Paul Martin

BRITISH investors are rushing to buy gold as a safe haven against Brexit uncertainty and growing fears of another global stock market crash.

By HARVEY JONES
Express.co.uk
Wed, Jan 16, 2019

Demand for the precious metal has soared, as investors are increasingly wary about buying shares in uncertain times. The benchmark FTSE 100 index fell 12 per cent in 2018, with the 10-year-long bull market appearing to be drawing to a close and the volatility looks set to continue. Brexit is not the only threat, as rising US interest rates, a potential recession in Europe and crash landing in China are also rattling investors. However, financial experts are urging savers to keep their nerve and avoid panic selling. Brave investors could even take advantage of today’s reduced share prices.

GOLDEN YEAR

The Royal Mint reported a 73 per cent surge in sales this month compared to last year and its director of precious metals Chris Howard said: “The trend is largely attributed to Brexit turmoil and market volatility in December and January.”

Investors buy gold as a store of value when other asset classes are falling and it should continue to shine as Brexit counts down. “We anticipate further increases in gold demand as uncertainty grows,” he said.

Joshua Mahony, senior market analyst at trading platform IG, said the news that the mighty German economy is slowing has added to the gloom: “Germany’s GDP rose just 1.5 per cent last year, which makes 2018 the worst for five years, dragging the euro sharply lower.”

WILD SWINGS

Laith Khalaf, senior analyst at Hargreaves Lansdown, said investor sentiment has swung wildly in recent months: “That is likely to remain the state of play until we see some light at the end of the Brexit tunnel.”

Global stock market volatility, the US-China trade war, and bad news from the UK high street have added to the febrile mood. He said: “In such circumstances it’s a good idea to remember the basics of investing. That means keeping diversified and focusing on long-term goals.”

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