A surge in gold prices has prompted a wave of British investors to flock to the precious metal, as Donald Trump’s chaotic trade war sends shockwaves through global markets.
The price of gold skyrocketed to a record-breaking $3,200 (£2,442) per ounce on Friday morning, marking its highest level in history. The spike follows renewed turbulence triggered by the former US president’s decision to impose sweeping tariffs, which have wiped trillions off the value of global equities.
The Royal Mint, Britain’s official maker of coins, confirmed a sharp rise in demand for physical gold as worried investors seek shelter from financial instability.
Toby Osborne, head of wealth management at the Royal Mint, said: “Amid escalating trade tensions between the US and China, we’ve seen more customers purchasing physical gold such as coins and bars from the Royal Mint website. With markets facing uncertainty, gold remains a trusted store of value.”
Mr Osborne added that silver was also gaining popularity, offering a more affordable gateway into precious metals investment, while gold trading on the site reached record levels.
High street pawnbroker and precious metals retailer Ramsdens reported a bumper rise in profits earlier this week, with a 50% surge in its gold division. The company said both the rising price of gold and the increasing weight of gold purchased contributed to the performance.
Market analysts say the rally reflects a classic investor strategy of turning to so-called “safe haven” assets during times of economic and political unrest. These assets, which include gold, typically carry less risk and often outperform riskier investments like stocks and shares during times of global uncertainty.
Sean Hoey, managing director at IBV International Vaults in London – one of Europe’s most secure private vaults – said: “As the volatility of US tariff policies continues to wreak havoc on international markets, we are seeing a significant rise in investor demand for safe-haven assets such as gold.”
The FTSE 100, along with major indices in Frankfurt and Paris, opened higher on Friday after a short-lived rebound on Thursday, sparked by Mr Trump’s temporary delay of some new tariffs. However, the early optimism quickly evaporated, with markets dipping back into negative territory as fears of a deepening trade war persisted.
Richard Hunter, head of markets at Interactive Investor, described the trend: “Following a brief relief rally in equities, investors headed to the door once more in search of haven assets.”
In addition to gold, investors have been piling into currencies like the Swiss franc and the Japanese yen, as the US dollar weakens under the weight of erratic trade policies emanating from Washington. Traditionally, the dollar acts as a magnet for investment during global crises, but Mr Trump’s unpredictable actions have unsettled even seasoned traders.
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The slump in the US dollar has coincided with increasing jitters about the global economic outlook. Concerns are mounting that the full implementation of tariffs on Chinese and other international goods could trigger a prolonged trade war, disrupting supply chains and driving up consumer prices worldwide.
Even some of Mr Trump’s most ardent political allies, such as Reform UK’s Nigel Farage, appear reluctant to support the tariff strategy. While Farage has been a vocal backer of Trump in the past, his silence on the matter has been noted.
For now, gold appears to be the asset of choice for anxious British investors, as they seek to shield their wealth from the ongoing economic uncertainty.
With tensions between China and the US showing no signs of abating, and the ripple effects of the trade dispute continuing to rock markets, analysts predict that gold may yet climb higher—cementing its role as a timeless hedge in turbulent times.
