Investors Move Into ‘Safe Haven’ Gold, Data From The Royal Mint Reveals

• In 2022, The Royal Mint saw a near 26% uplift year-on-year in the number of gold investments 
• New survey research[1] shows the trend is set to continue as almost a quarter of UK investors (23%) plan to invest in gold this year  
• Precious metals investors are set to increase their total monthly investments by 16%, with a majority (53%) motivated by what many see as the asset’s ‘safe haven’ status 
• Almost two in three investors (63%) are more aware of their investment risk as a result of the rising cost of living 

More UK investors are moving into precious metals investments such as gold from The Royal Mint as market uncertainty remains, new data reveals. 

As investors adjust to an increasingly uncertain macroeconomic picture, we saw a near 26% uplift year-on-year in the volume of gold investments during 2022, with sales of gold bar investments in particular rising by 33.5%. The increase in gold investments was driven by Gen-Z and Millennial customers, who increased their volume of purchases by 38% and 29% respectively last year.  

This trend looks set to continue, with a poll of more than 2,000 UK investors, undertaken by The Royal Mint, showing that almost one in four investors (23%) plans to invest in gold this year – a figure which rises to 26% amongst Gen-X investors. The poll also revealed that precious metals currently rank as the second most popular investment after UK stocks and funds, with nearly a third of investors (30%) planning to invest in this asset class in 2023. Nearly one in six investors (16%) who haven’t previously invested in precious metals plan to do so in the future. 

The growing popularity of precious metals is, in many cases, being driven by the increasing investment appeal of the asset class as a potential means to protect portfolios in volatile markets. A majority (53%) of future precious metals investors surveyed said they are motivated to invest by the asset’s ‘safe haven’ status, with many (29%) encouraged by the belief that the asset is less risky than other investments. 

Gold started 2023 on a nine-month high and reached a 12-month high in March, after events including the collapse of Silicon Valley Bank pushed prices over the $2,000 mark. Following SVB’s collapse, The Royal Mint saw a 230% week-on-week increase in sales of gold investments. 

Commenting on the research, The Royal Mint’s Director of Precious Metals Andrew Dickey said:  

“At a time when financial markets are notably more unpredictable and investors are becoming increasingly aware of risk, everyday investors are taking active steps to protect their portfolios. It is clear from the data that investment risk is front of mind for UK investors, with many looking to add precious metals to their portfolios this year. 

At The Royal Mint, we are seeing more investors consider, and invest in, precious metals as a potential means to protect their portfolios and attempt to navigate volatile market conditions. From our experience, gold and precious metals grow in popularity during challenging times for the global economy as investors look to diversify their portfolios and hedge against inflation. However, for many risk-conscious investors, these market moments are only a trigger for a long-term investment in precious metals that grows over many decades and retains what many see as its ‘safe haven’ status.” 

Notes: 

[1] All data, unless otherwise specified, is taken from 2,005 respondents of a representative sample size conducted by Censuswide in February 2023. All respondents were 18 or above and had previously invested money. 

Censuswide abides by and employs members of the Market Research Society, which is based on the ESOMAR principles 

Disclaimer: 

The contents of this article is accurate at the time of publishing, and is for general information purposes only, and does not constitute investment, legal, tax, or any other advice. Before making any investment or financial decision, you may wish to seek advice from your financial, legal, tax and/or accounting advisers.