UK gold investors ‘buy the dip’ amid global markets’ latest storm

Bullion trading via The Royal Mint’s website trebled (336%) after global financial markets plummeted on Monday (5 August 2024), the Royal Mint revealed. 

The number of investors transacting increased by 53%, compared with this year’s daily average, with precious metals buying outpacing selling by a ratio of 5:1

Additionally, 1oz Gold Britannia coins, Digital Gold, Sovereign coins and 1kg gold bars dominated customer spend as gold prices dropped in Monday morning trading

Commenting on the data,  Stuart O’Reilly, The Royal Mint’s markets insights manager, said: “As global financial markets plummeted in Monday’s trading, precious metals investors were split into two camps. On one side, traders were forced to reduce their holdings in gold and silver following recent market highs so that they could cover losses in global equity markets. 

“At the same time, as precious metals prices dropped after this sell-off, UK retail investors viewed this as an opportunity to lock in lower prices while increasing their allocations to gold and silver. Clearly, many were opportunistically buying the dip as gold dropped below US$2,370 (£1839.6) per troy ounce after rallying to more than $2,470 (£1917.2) the Friday before.”

O’Reilly added: “The concern around Monday’s trading also led to a rush of new investors buying precious metals as many will have likely been motivated to invest by the asset’s ‘safe haven’ status. The number of first-time customers buying bullion from The Royal Mint increased by 68% on Monday versus the daily average this year. 

“As the home of precious metals investing, we often see how significant market events, such as Monday’s shock, impact sentiment to precious metals. From our experience, gold and precious metals investing grow in popularity during more challenging times for the global economy as investors look to diversify their portfolios and hedge against inflation.”