Public trust in the UK government is at a seven-year low, according to the annual Edelman Trust Barometer, mostly provoked by economic pessimism. This growing scepticism is a key reason Ian Peacock upped his gold holdings from 10% to 50% of his investment portfolio. He’s not taking any chances.

Wakeup call

Ian started buying gold in 2020.

“I woke up!” he says. It started with questions and uncertainties about whether the UK government was telling the truth about the Covid-19 pandemic. “Once I saw the money being wasted by the government under false pretences, on things like the Covid App, PPE, PPE Contracts etc, I started to wonder whether the financial system was equally as murky, and maybe we weren’t being told the truth here either.”

“Once I started to research and understand the system, I realised that we are in a bubble that has to burst. The governments are broke and inflation was going to get very bad. I invested in gold as it is a hedge to inflation, I don’t expect to make a profit on it, but it will protect my wealth against inflation which is currently stealing a lot of my money.”

Consultative approach

The initial impetus for buying gold was how the government handled the Covid pandemic. Ian chose The Pure Gold Company because of its consultative approach which gave him the information he needed to make an informed decision about his gold investments. More recently Ian has continued to add to his gold portfolio because he has concerns about the billions of pounds being sent to Ukraine. He believes government spending is out of control.

“Either way it is a lose lose situation. We are in a bubble that has to burst or be continually propped up by the government. If the bubble bursts you lose your money. But if the government keeps propping up the markets by printing money, then inflation will make sure you lose your money as well.”

Josh Saul, CEO of The Pure Gold Company said: “There are an increasing number of clients who want to protect themselves from a financial system that they see as flawed. As the economic situation worsens, the sense of dissatisfaction with the government grows and they turn to physical gold to shield themselves from both the inflationary environment and the financial institutions that they no longer trust.”

Ian, an engineer in his 40s from Cambridgeshire, still owns some stocks and shares from before the pandemic but hasn’t bought any more since then. He keeps up with current events, monitoring prices and financial news every week. He is using his savings to make regular gold purchases.

“The world we live in now is only going to get worse in the short to medium term.  Fiat currency in all countries is getting less and less in terms of what it can buy you and conversely the value of gold will continue to rise.”

Today Ian’s gold holdings have grown to 50% of his portfolio, and he has sold some stocks from his SIPP (Self Invested Personal Pension) to invest in physical gold in the same vehicle. He’s making sure he has a safe haven when the bubble bursts.

The post Why Ian Peacock upped his gold holdings to 50% appeared first on The Pure Gold Company.

Stalled growth, stubborn inflation, high interest rates, failing banks, ratings downgrades, the red flags are flying and experienced investors are getting worried. Especially investors like Natalie Riesenberg who has seen, first hand, the fallout of a major economic crisis.

On Friday 12 September 2008, Lehman Brothers trader Natalie Riesenberg and her colleagues were placing bets on which bank would own them by the end of the weekend. No-one bet it would be a bankruptcy filing. What followed was a month of playing management-sanctioned video games while they waited to know their fate.

Today, Riesenberg is 15 years older and better prepared. She’s watching as banks falter or fail and she’s making sure she isn’t blindsided by another economic downturn. 

“I have rectified my mistakes and am investing in gold for long term security.”

In the front row of the Global Financial Crisis

“On the morning of 15 September 2008, I arrived at the office and was handed a piece of paper. It said: ‘Do not to speak to clients, do not to switch on your computer and do not to trade’.

Each department was to be sold off and it was clear that without its people, the departments were nothing, so we stayed there for over a month waiting to be bought. Eventually, after several days we were allowed to switch on our computers in order to play games – Tetris, Angry Birds and a selection of other ‘high-brow’ games.”

“I remember a Managing Director approaching my desk in excitement at a new game they hadn’t seen before. I forwarded it to them and soon after, you could see multi coloured balls bouncing across the multiple screens on their desk as they tried to explode colourful balloons. It was a very surreal sight, walking the trading floor every morning to see millions of bouncing balls on hundreds of screens played by dozens of educated, intelligent men and women waiting to find out their fate.”

Natalie had been at Lehman Brothers for a year before the crash, working as a sales trader for the Emerging Markets Credit Derivatives team.

“2008 really did feel like the end of the world. A more experienced trader who saw the crash of 1991 would perhaps have felt less concerned perhaps about the crash of 2008 or at least have been better prepared for it.” she says.

Back then, Natalie saw the value in investing in gold, but she was dipping in an out rather more quickly than the average long-term investor. She regrets not buying and holding gold back then.

“I often told my parents during that time that they should be investing in gold. It was one of the easier assets for a lay person to understand.” But she didn’t take her own advice until much later.

While gold as an asset class is simpler than many financial investments, it can still be daunting for the lay person to know when and what to buy. A consultative firm like The Pure Gold Company talks directly to its clients to ensure they understand their options and can make an informed choice. Natalie also turned to The Pure Gold Company when she decided to buy gold. For an experienced investor, Natalie wanted to be able to take advantage of trading opportunities when they came up, and their Buy Back Guarantee gave her this option.

A new perspective

So, what has changed? For Natalie a lot of it has to do with perspective. She has a family now. “I have my children’s financial security to think about and this gives me a new and different perspective to that of 2008 when I was carefree. As a sales trader there will always be a part of me that enjoys risk and playing the market, but I would always want to hedge myself with something more secure and for me, that is gold.”

“In this market and the looming years of economic downturn, to solely invest in risky assets would be foolish, especially if you have a family to think about. The global economic downturn is clearly a concern, which makes me even more inclined to either invest solely in less risky assets such as gold or bonds or at least heavily hedge myself with them.”

The sense of déjà vu is increasing. After three major bank failures in the earlier this year, the US banking sector came under further pressure in August following a downgrade by ratings agency Fitch. The June downgrade leaves the entire sector just one rating away from widespread negative actions, which could hit large and small banks around the country. Meanwhile in the UK, Metro bank is floundering, and next year the Bank of England said it will “take stock and update” its stress tests, looking at whether more banks should be added.

Echoing customer concerns

Josh Saul, CEO of The Pure Gold Company says: “Natalie’s concerns about the future of the economy are particularly worrying because she has experienced a major global market crash first hand. We focus on ensuring our clients make informed choices about buying gold, and have the opportunity to sell quickly when they find new opportunities.”  

Today, Natalie’s portfolio includes gold. She uses it to protect her wealth from market volatility and counterparty risk – the risk that the other party to your transaction or investment (banks, companies, governments) might fail. Physical gold reduces counterparty risk, which has become much more acute as the number of bank collapses has risen during 2023. It is a tangible asset that, well-stored in a segregated, allocated vault, provides a safe-haven from an uncertain future.

The post Natalie Riesenberg has good reason to fear another downturn appeared first on The Pure Gold Company.

Is gold investment for you?

Watch our latest gold investor stories to find out why so many trust and enjoy working with us.

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Questions:

Q:  Where do you live? What’s your occupation and age?

A: My wife and I live in Clovelly a small North Devon Fishing Village I own my own business Carpet & Upholstery Cleaning and Eileen (my wife ) owns a Tea shop with her mother in Clovelly

Q:  Is this the first time you have bought gold? If not, when did you buy previously?

A: I have bought gold before by the gram and quickly realised it was an expensive way of buying gold.

Q:  Why did you think gold could be a good investment?

A: My private pension was coming to fruition and I started to look around for an investment, and soon started to realise that the whole world economy was on a decline and within the next few years I could see that big changes are going to occur even before Brexit. With interest rates so low there doesn’t seem to be many safe alternatives to gold.

Q:  What’s the reasoning behind your choice to buy gold?

A: I thought that gold would be a safe haven for my pension and also found that gold would go up when the world economy was in crisis. Looking back to the 2008 crisis the gold price went up significantly and could see similarities with the economy now.

Q:  Have you seen the value of your pension decline? By how much?

A: My pension doubled in the last 8 years but in the last 12 months it stood still after the China crisis and thereafter it started to decline.

Q:  Have you been affected by lower annuity rates or by investment declines in your pension portfolio?

A: Yes – the China crisis has negatively affected my pension. Lower annuity rates would have been terrible for our retirement. The lower interest rates means that we just can’t leave our pension in cash as it would earn nothing.

Q:  How do you believe an investment in gold will mitigate these impacts?

A: Gold is a safe haven and as the world economy is in turmoil gold we believe it will only go up in price.

Q: What are you most worried about and how do you think gold can protect you?

A: Brexit and negative interest rates concern us. There seems to be a lot of change within the world at the moment and notwithstanding the US elections, Europe is going to have a very bumpy road ahead.  I am aiming to retire and sell my business and looking to keep the Gold for 3 to 5 years and then take the profits as the world economy corrects itself and the price of gold will stabilise.

Q:  How did you decide which UK gold dealer to use and would you recommend them to others?

A: I looked around for about 3 Months locally and on the internet speaking to over 10 different gold companies then I came across The Pure Gold Company, I called them and by chance spoke to Joshua Saul the owner and we spoke for over 30 minutes and decided to look into the company and Joshua. I found that Joshua had solid credentials and found him on Bloomberg TV, and found his business was sound. I then called Joshua back a few days later and found that as he answered the phone to me in the first instant then he would be my contact within The Pure Gold Company for good. I found him very accommodating and enlightening about Gold and he listened to what I was looking to do with my pension and helped me to release my funds from Aviva which Joshua helped me greatly and saved me £1,500 as Aviva was slow to release the funds as Gold went up in price and Aviva agreed a settlement with The Pure Gold Companies assistance.

Q: How much gold did you buy?

A: I invested my Pension funds into gold

Q: What format (bars, coins etc) and why?

A: 25% in gold coins and 75% in SIPPS physical gold

Q: Will you store it yourself or have it held in a vault?

A: We have it held in a vault at Loomis International created for us by The Pure Gold Company.

The post Case Study: Mark & Eileen Turnock invest in gold through their pension amid fears of market volatility appeared first on The Pure Gold Company.

“Over the foreseeable future I see gold rising considerably because of global economic and financial instability, in particular with banks,” Laura says.

But she isn’t worried if the price does fall. “If in the foreseeable future gold went on a downward trajectory, I would be delighted as it would mean greater financial stability and as a result our other investments should hold strong or grow in value.”

Laura and Simon have also invested in SIPP stocks & shares, Insurance investment Bonds invested primarily in equity funds, premium bonds, cash ISA’s and a property portfolio.

They chose to buy gold sovereigns as these are capital gains tax exempt, and the gold is held in vaulted storage through The Pure Gold Company. “Trust is an important factor for both of us and as such we would only use a reputable UK gold dealer with an impressive track record. That’s why we have only ever dealt with The Pure Gold Company in London where gold is purchased online but you get your own relationship manager,” says Laura.

The post Essex financial consultant Laura Dellow hedges her bets with gold. Find out why she would only use leading uk gold dealer – The Pure Gold Company appeared first on The Pure Gold Company.

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We’ve included below three case studies of genuine clients of The Pure Gold Company and their motivations for protection during these uncertain times. This has been covered by The Daily Mail and Your Money. Our client’s permission has been given here and no information used discloses their true identity.

Investment banker buys gold insurance policy
Dave, a 35 year-old investment banker, has been working in the city since he was 21. Uncertainty in the market has prompted redundancies and head count freezes within the banking industry, evidenced by friends who have been unemployed for almost a year. He believes many of the UK and EU banks are in a very dangerous position, and a vote in favour of Brexit could cause a drop in UK GDP, which may mean further job cuts at his firm. His main focus is on the aftermath of Brexit and the delayed talks with Greece later in the year over a possible default, which is more than enough to worry the markets.
Ron owns shares in a variety of markets but now he has purchased physical gold from The Pure Gold Company to hedge his position either way. He doesn’t expect to get rich on the gold price (although it is expected to rise in the near term), it’s more of an insurance policy that he hopes he won’t have to use. Many of Ron’s colleagues have followed suit.

Expat ski-instructor buys gold to hedge currency position
43 year old Phil was born in the UK and is now based in Courchevel in France during the winter as a ski instructor and Sardinia in Italy in the summer as a wind surf instructor. Having done this for 19 years, he is concerned that a vote in favour of Brexit will take away his ability to earn in the EU. If he is forced to return to the UK, the money he has saved over the last 30 years (now all in Euros) may lose significant purchasing power when converted back to sterling. He has decided to hedge his position and use a third of his money to purchase physical gold from The Pure Gold Company. He is currently having his metal stored in Zurich as he is unsure as to where his base will be in 3 months time.

Retired engineer buries his gold in £850,000 treasure hunt legacy
Ron is an 84-year-old retired plane engineer. He was widowed 3 years ago and has four daughters and 14 grandchildren. He retired at 65 and has made a substantial amount of money in the property market both in the UK and Germany. Having lost a considerable amount of his pension in the 1980s crash, he had rebuilt this only to lose more of it in 2008. He had money in Northern Rock that he struggled to recover and he lost investments in Lehman Brothers.
In 2015 Ron sold all his properties amid fears over the property market. Based on his previous experiences, fears over the banking industry and the general global economy including the Brexit vote, Ron decided to remove all exposure to cash, equities, banks and financial intuitions. Between November 2015 and April 2016 Ron purchased £850,000 worth of physical gold from The Pure Gold Company in London.

He had the gold delivered rather than stored in vaults and has buried it in his 5-acre garden using a digger to ensure it is properly buried. He has plotted unique co-ordinates and a map of his garden and has created 18 unique versions of the map – one for each of his family members. The maps have been given to his lawyer for safe-keeping.

Like any investment, physical gold must be a considered purchase. But consider this – George Soros recently bet $263 million on a gold miner, the World Gold Council expects the gold price to remain healthy, and the Chinese are buying up gold vaults in London. Josh Saul, CEO of The Pure Gold Company has seen an 32% jump in enquiries over the last four weeks as people wobble on the implications of the EU referendum and a growing number of retail investors now seek guidance on how to brace for Brexit.

The post Three different clients, three very different motives for buying gold appeared first on The Pure Gold Company.