The upcoming general election in the UK has sparked a surge in the purchase of gold and other precious metals as Britons seek a safe haven for their investments. Following Prime Minister Rishi Sunak’s announcement of the election date on July 4th, a wave of uncertainty has led many to turn to gold as a secure asset.
Investors often flock to precious metals during times of political or economic instability, as the value of gold remains relatively unaffected by external factors. The Royal Mint has reported a significant increase in the number of customers buying precious metal bullion since the election was called, with a 49 per cent rise in purchases.
The price of gold has risen by approximately 21 per cent in the past year, attracting both seasoned and first-time investors looking to safeguard their funds. Stuart O’Reilly of the Royal Mint notes that the current uncertainty surrounding the election has driven many to seek safe-haven investments like gold.
Interestingly, a large portion of recent precious metal buyers belong to Generation X, aged 44 to 59 years old. Popular products include 1oz gold and silver Britannia coins, large gold bars, and sovereign coins.
While some investors may be turning to gold due to geopolitical tensions and concerns about stock market valuations, others are considering tax implications. Gold coins produced by the Royal Mint are considered legal tender currency and are not subject to capital gains tax, potentially attracting investors apprehensive about future tax changes under a new government.
Overall, the surge in gold purchases reflects a broader trend of investors looking for stability and security amidst uncertain political and economic conditions.
