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Royal Mint reports gold rush in wake of interest rate cut

Published 12/08/2016

Demand for gold is soaring among investors seeking safe havens for their money
Demand for gold is soaring among investors seeking safe havens for their money

The Royal Mint has said that it experienced a gold rush following the Bank of England's decision to slash interest rates to 0.25% on August 4.

The Mint's bullion website saw a 250% increase in visitor numbers on the day of the cut compared to the previous day.

The week of the Bank's announcement also saw a 25% increase in transactions and a 50% rise in sales of gold bars and coins compared to the week before.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: "There has been a veritable gold rush this year, as global economic woes and loose monetary policy have attracted investors to the yellow metal in their droves, and it's no surprise that the Bank's interest rate cut has exacerbated this trend."

The figures come after data from the World Gold Council showed that the "potent combination" of Brexit, the US election and negative interest rates is seeing demand for gold rocket as investors seek out safe haven assets.

The price of gold has risen by 25% so far this year, from 1,060 US dollars to 1,330 dollars. In sterling terms it has risen by 45% due to the collapse in the value of the pound following the Brexit vote.

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