LONDON, 26 February 2016 – Uncertainty fuelled by the UK's forthcoming referendum on EU membership is driving a surge in British households buying gold, reports investment analysis specialists Morningstar, citing BullionVault data and comment.
The average number of new UK users joining BullionVault each day this month is 122% ahead of 2015's daily average, Morningstar says, with the average amount of money deposited by these new users jumping 73% to £8,600.
What's more, many of these new investors are younger than BullionVault's typical average – and "age is clearly a factor in the forthcoming Brexit vote," the report notes, citing opinion polls.
"Private households tend to buy investment gold when they fear a currency crisis, a stock market crash or broader financial turmoil," Morningstar quotes Adrian Ash, head of research at BullionVault.
"The Brexit referendum in June could bring all three judging by the fast-growing number of British savers switching a portion of their money into gold and silver, which has also posted strong gains recently."
Gold prices are also rising against other currencies than Sterling, driven by "broader fears around China, commodity prices and the equity sell-off."
Read the full report at Morningstar here:
