Gold bullion dealers BullionByPost are reporting record sales as investors are looking to protect their wealth against inflation and the falling pound. Investors are looking to buy gold in the form of gold bars and gold coins choosing to take physical delivery rather then relying on electronically traded funds (ETFs).
Inflation is rising again and despite the Bank of England's confidence that it is a temporary blip private investors are voting with their savings and moving them into gold as a hedge against a continuing fall in the value of their savings.
With interest rates at record lows and continuing uncertainty around the state of the economy and mounting government debt many investors are using physical gold as an insurance policy against a further deterioration of the UK economy.
Physical Gold can be bought in either gold bars or coins and the price fluctuated based on the underlying price of gold on the global market. Gold bars can be bought in sizes from 1g up to 1KG with 100g gold bars currently costing around £2350 proving the most popular.
The most popular gold coin is the South African one ounce Krugerrand which sells for around 4% above the spot gold price. British sovereign gold coins are also very popular as canny investors believe that their status as British legal tender will make them exempt from any potential capital gains tax.