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Demand for gold rockets as investors seek stability

Published 21/06/2016

The Royal Mint says demand for gold is on the up
The Royal Mint says demand for gold is on the up

The Royal Mint has seen demand for gold rocket in the run up to the EU referendum as investors seek sanctuary in the safe haven metal amid increased volatility in stock and currency markets ahead of the vote.

Gold transactions on the Mint's trading platform have soared 32% in the month to date, with revenue seeing a 150% boost as a result.

Director of bullion at The Royal Mint, Chris Howard, said: "As we head towards the European referendum vote this week, our royalmintbullion.com trading platform has seen a significant upsurge in traffic - with a 32% increase in transactions compared to the same period the previous month."

Mr Howard added that its Sovereign and Britannia bullion coins, and Signature Gold bars, have been snapped up by investors in increasing numbers since the beginning of the year.

Last month, figures from the World Gold Council also showed that demand for the precious metal spiked by a record 21% in the first three months of the year, driven by Brexit fears and the growing use of negative interest rates.

The council's report said that investors in Europe have been "plagued" by lingering Brexit fears, driving demand across the continent.

Stock markets and the pound have seen wild fluctuations over the past week, driven down and then up again by a series of opinion polls - first showing voters favouring Brexit and most recently Remain.

Mr Howard added that more turbulence could be on the way.

He said: "Whilst we are uncertain at this stage on what impact the results of both the European referendum vote and the US elections will have on the gold market, we have ensured that, with The Royal Mint's trading platform and our significant gold holding, we are prepared for possible market turbulence".

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