US and North Korea tensions threaten financial markets as retail investors rush to buy physical gold for the first time
Sales at gold investment firm The Pure Gold Company increased by nearly 150% last week as tensions between the USA and North Korea intensified, heightening concerns that an attack could have significant adverse consequences on financial markets.
CEO Josh Saul said: “First time buying has increased 76% this week, and many say the source of funds for their gold investment is coming from low interest savings accounts and ISA funds. Fear and uncertainty within politics, international relations and national security are provoking the financial markets and people are unsure how this could affect their wealth. It’s the unpredictability that our clients are most anxious about, so they are looking for a safe place for their assets.
“Over 64% of all physical gold sales this week have come from those in financial services including banking, accountancy and those in the hedge fund space. Their front row view of market volatility has spurred them to act quickly. Many of these clients recall the effect on financial markets when Russia attacked Ukraine or when the USA went into Iraq, and are looking to protect their assets from market decline.”