Investors have been flocking to precious metals in recent weeks in a bid to protect their wealth from tax changes ahead of the Budget.
Gold purchases have risen from 260 a week to 918 – an increase of 253% – while silver purchases have climbed from 140 to 374, up 167%, according to The Pure Gold Company.
The increase is the largest recorded ahead of the five Budgets for which the company has provided comparable figures.
Joshua Saul, CEO of The Pure Gold Company, said: “It makes sense that we see a rise in gold buying ahead of Budgets, as investors look to protect their wealth against the prospect of tax changes, particularly when it comes to Capital Gains Tax and other measures that could affect investment returns.
“What’s interesting is that we’ve seen this pattern ahead of previous Budgets, too. The larger increases ahead of the October 2024 and October 2026 Budgets could reflect investors’ perception that Labour is more likely to target wealth and investment through measures such as CGT increases.”
The firm has also seen a 25% jump in enquiries over the past week from people concerned about cyber attacks, supply-chain disruption and the potential impact of wider emergencies on their access to money.
Amid warnings from the government to stockpile emergency supplies and retain cash, The Pure Gold Company said some investors are increasingly interested in holding physical gold at home as a way of maintaining access to part of their wealth if online banking or financial systems become unavailable.
Meanwhile, wealthier investors are looking at qualifying UK legal tender gold coins as a potential hedge against inflation, with the additional attraction of CGT-free gains.
Saul added: “Qualifying UK legal tender bullion coins are exempt from CGT for UK residents. Gold bars and many ETFs held outside an ISA may be taxable, depending on their tax treatment. With the annual CGT allowance now just £3,000, more investors could face a bill when they sell.
“And with the cash ISA allowance for under-65s due to fall to £12,000 from April 2027, the tax treatment of physical gold could become even more relevant to those who have already used their ISA allowance.”
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