Camden becomes gold capital of Britain
Precious metal has become an increasingly popular investment – particularly in one London borough
RESIDENTS in Camden are buying more gold than anywhere else in Britain, analysis shows.
The precious metal, which has surged in price, has become an “increasingly popular investment choice”, with householders purchasing gold bars and coins to store at home as an asset of last resort.
Research by the dealers BullionBy-Post has found that the average gold investor in the London borough of Camden bought 369g, which is the equivalent of £22,343 based on current values.
The company ranked the top 50 areas for household gold reserves by calculating the average number of grams sold, per customer, cumulatively over 10 years. Six other London boroughs make the top 20, but the investment is by no means limited to the capital, with Dorset (£17,004) fourth on the list and the Highlands of Scotland fifth (£16,658).
Other areas with high gold values include the Shetland Islands, Bromley and Walsall. Pete Walden, of BullionBy-Post, said: “Gold bars and coins are no longer the preserve of the wealthy but are an increasingly popular investment choice for many people.” Mr Walden said that the trend has not only been driven by past events, such as the Covid pandemic, which rocked stock markets, but also concerns about the future.
He added: “The current demand has been driven by a perfect storm of global economic issues and geopolitical uncertainty, combined with inflation and high interest rates in the UK.
“By buying physical gold and tucking some away in a safe place, they know they have more control and can actually get their hands on it, if need be.”
Investment-grade gold, such as bullion bars and coins, are VAT-free, while Royal Mint coins that are legal tender are exempt from capital gains tax.
Gold has always been seen as an attractive asset, but has been rising in price and popularity since the financial crisis in 2008.
Prices have soared more than 17.5 per cent in the past three months, peaking on April 20 at £1,933 per ounce. It may have since slipped slightly, coming in at £1,901 yesterday, but the price is almost £900 higher than five years ago. It is in huge contrast to 1999, when Gordon Brown, the chancellor at the time, sold off half of the nation’s gold when the price was at a 20-year low, costing the Exchequer billions of pounds in lost profits.
Mr Walden said the average buyer is ordering a modest £2,000 worth of gold, the equivalent of a 1oz bar or coin.
Experts advise those keeping gold at home to invest in a high-security safe and take out insurance cover.