Since the Bank of England’s decision to raise interest rates for the first time in a decade and initial warnings of a near 2% rise in the gold price, the firm saw a significant rise in sales.
A survey also saw a 73% increase in the number of financial professionals over the age of 50 purchasing physical gold in the last week.
Out of property and into gold
Josh Saul, chief executive of the firm, said many in the age bracket had sold property in order to increase their exposure to the precious metal.
“They know that over nine million people have never known a rate rise in their adult lifetime, and they remember the property slump of the early 90s,” Saul said.
He added: “29% of people who made enquiries in the last week have already taken action over the last six months to sell investment properties and use the proceeds to purchase physical gold.
“Our clients view physical gold as a long-term store of wealth that increases when other assets fall in value such as property, equities or currency.
“Global political instability is exacerbating economic unpredictability, and physical gold has a proven track record of guarding against some of these risks.”
According to a survey carried out by the firm, unaffordable mortgages and record-high debt are also a key reason for the rise in gold sales.
It revealed 61% of people under the age of 40 stated they would struggle to pay their mortgages if rates increased to pre-crisis levels of 5%.
Saul added: “Many of our enquiries are from people concerned that mortgage payments will become unaffordable resulting in property sales, relocations and a fear of negative equity.
“Over a fifth of people enquiring about buying gold have already noticed an increase in their mortgage payments as their variable rate has been effected immediately. Those most concerned have been retirees and young professionals such as teachers and nurses.”
