Gold demand spikes ahead of the EU referendum, Royal Mint says

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Demand for gold has spiked in the run up to the EU referendum.

Investors are looking for stability amid increased stock and currency market volatility, according to the Royal Mint.

Transactions have jumped by 32 per cent since the start of June on the Royal Mint’s online trading platform, compared to last month. Revenues have increased nearly 150 per cent in the same period.

Since 2016, demand for precious metals has risen. Gold is a favourite, according to Chris Howard, director of the bullion at the Royal Mint.

“Whilst we are uncertain at this stage on what the 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,” Howard said.

He added that signature gold as well as sovereign and Britannia bullion coins have performed particularly well and continue to attract investors.

Global gold demand rose by a 21 per cent from January to March this year, its fastest pace ever, according to the World Gold Council (WCG).

Concerns about the shifting global economic and uncertain financial landscape have created a positive environment for the precious metal to become a ”safe haven” for investors.

China, the world’s biggest consumer of gold, has devalued the yuan, fuelled fears over the country’s economic health and the potential impact on global growth.

Investors plagued by fears that Britain could leave the EU have also triggered a rise in demand across Europe, according to the WCG.

“Looking ahead we anticipate that on-going market uncertainty and unconventional monetary policies will continue to support both investment and central bank demand,” Alistair Hewitt, head of market intelligence at the World Gold Council, said.

Last year, the Royal Mint put gold bars on sale for the first time. Measuring 53mm by 118mm and 8mm thick, the Royal Mint-branded bars were put on sale at around £24,000 to £25,000, depending on the price of gold

Royal Mint web trading platform allows investors to buy gold, silvers coins and gold bars to be stored in the organisation’s vault and are subject to a one per cent (plus VAT) storage charge, based on the daily market value.

The most expensive bar featured on the organisation’s website is currently priced at more than £28,000. That buys 1kg of gold.

In June, the Royal Mint opened its golden vault to pensioners for the first time, allowing customers to own a fractional amount of a 400oz gold bar to be held as a pension scheme.