Entrepreneurs behind Liverpool Vaults, based at the city’s Royal Liver Building, claim this year its parent company Merrion Vaults has seen a 200% surge in new clients. Tony McDonough reports
There has been a surge in people buying and storing gold at a Liverpool facility amid fears over Brexit and the weakness of sterling.
Entrepreneurs behind Liverpool Vaults, based at the city’s Royal Liver Building, claim this year its parent company Merrion Vaults has seen a 200% surge in new clients who are buying gold and storing it.
In times of economic turmoil many investors have traditionally turned to gold as a safe haven and the rise in business at Merrion suggests the phenomenon may be repeating amid the current uncertainty over Britain’s departure from the EU.
Liverpool Vaults opened at the iconic location earlier this year and joins Merrion’s other facilities in Glasgow, Newcastle and Dublin. Séamus Fahy, co-founder of Liverpool Vaults says the UK’s EU exit is having a big impact on the Liverpool operation, which began trading in February
He added Liverpool Vaults had been its busiest and most successful launch to date, with new clients signing up at its fastest rate.
“Our expanding client base in the North are worried about sterling’s weakness and are diversifying into physical gold in order to hedge the uncertainty and volatility as the March 29 ‘divorce date’ draws closer,” said Mr Fahy.
“Significantly a lot of clients have interests abroad and their big fear is a plunge in sterling. Consequently, they are seeking ways to ring-fence their position and gold is seen as a safe haven in times of turmoil.”
Global demand for gold hit a four-year high in 2016, according to a report from the Work Gold Council. While demand has fallen between January and June 2018, Mr Fahy said the market is not in bad shape and the metal remains an attractive hedge for rising inflation pressures.
“With the risk of no deal, investors are going to become increasingly sensitive to Brexit headlines over the next six months. Introducing gold to their portfolios is a smart move,” he added.