Posted inAlternatives

Gold sales soar as North Korea nuclear threat bites

First time buyers of gold increased 114% on Monday, with calls beginning as early as 5am according to Josh Saul, CEO of The Pure Gold Company.

The gold price was up 1% on Monday morning, and has increased 6% since the beginning of missile testing in July.

The firm dealt with a record number of enquiries as investors searched for a safe haven investment as tensions between the US and North Korea ratcheted up over the weekend.

Defence secretary James Mattis warned any threat to the US or its allies would spark a massive military response after a test of a North Koreaan hydrogen bomb caused a 6.3 magnitude earthquake. 

President Donald Trump later added the US would stop trading with any country still engaging with North Korea.

It sparked a bigger surge in gold purchases than the day after the Brexit vote when the gold price increased 26% over the course of one day.

Professional investors have also been shaken into buying the safe haven asset.

Saul said: “We’ve seen an 89% increase in financial professionals purchasing physical gold. They cite the same geopolitical fears and are buying to protect themselves from the systemic financial consequences of increased volatility and uncertainty, which may ultimately lead to currency and equity market crashes.

“Increasingly, our professional clients mention that President Trump’s pledge to stop doing business with any country that still has relations with North Korea could have severe financial implications, as it would mean possibly no trade with China.”

Louise Hill

Louise joined Portfolio Adviser in December 2016 as one of the editorial team’s news reporters based in London. Originally from Liverpool, she is an NCTJ-qualified journalist and began her career in...

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