Demand for gold surges after SVB’s collapse
The demand for physical gold has jumped as investors look to protect themselves from the fallout of SVB’s demise.


The fall of Silicon Valley Bank and two other financial institutions in the US has reverberated through global markets. The recent action in the gold price shows that investors, spooked by the events across the Atlantic, have rushed to safety as they seek to protect themselves from the fallout.
The price of gold has jumped back above $1,900 per ounce in the past few days, leaving it trading close to its all-time high of $2,036/oz printed in July 2020 when the global economy was at the mercy of the coronavirus pandemic.
In sterling terms, the price of gold is trading at £1,564/oz, a shade below its all-time high of £1,577/oz recorded in January of this year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Gold price surges as demand grows
The gold price has spiked as demand for the yellow metal has surged in recent days. The Pure Gold Company, which specialises in helping investors acquire physical gold and silver, saw a 385% increase in new enquiries over the weekend and a 274% increase in investors purchasing physical gold on Monday, compared to the daily average in 2023.
Josh Saul, CEO of the gold investment firm, said: “Customers seem quite panicked. The collapse of Silicon Valley Bank has ignited renewed fears over counter-party risk and the memory of the 2008 banking collapse looms large.”
He went on to add, “Purchasing physical gold allows investors to move their wealth out of the banking system and protects it from most counter-party risk. Growth may not currently be the driving force behind gold purchases, but when market confidence falls there is often a rush to safe haven assets which can increase the value of gold.”
The recent events in the US only seem to have exacerbated a trend that’s been playing out for the past two years.
The Pure Gold Company has seen a 712% increase in people purchasing physical gold bullion for their pensions while selling equity holdings this year.
And it’s not just the Pure Gold Company that’s seen a jump in business.
Andrew Dickey, the director of Precious Metals Investment at the Royal Mint, recently revealed the Mint has seen a 202% increase in demand for physical gold and silver over the past year. Many of the Mint’s customers are younger investors who’re buying physical gold for the first time.
The World Gold Council has reported last year physical gold hit 4,741 tonnes, with demand led by global central banks, which bought more physical gold than at any point since 1967. Demand by retail investors hit a nine-year high of more than 1,200 tonnes.
What’s driving physical gold demand?
There’s always a spike in demand for gold as a safe haven asset in times of uncertainty, but the steady rise in demand for the physical metal over the past two years is notable.
Investors both large and small have been flocking to the yellow metal as they try and protect their purchasing power and wealth.
As Saul says, “Investors are already concerned about the economic outlook in the face of a continued cost-of-living crisis, inflation, recession fears, and the unrelenting geo-political situation. A bank collapse may just be the tipping point for some investors looking for a safe haven in the storm.”
Rupert is the Deputy Digital Editor of MoneyWeek. He has been an active investor since leaving school and has always been fascinated by the world of business and investing.
His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.
Rupert was a freelance financial journalist for 10 years before moving to MoneyWeek, writing for several UK and international publications aimed at a range of readers, from the first timer to experienced high net wealth individuals and fund managers. During this time he had developed a deep understanding of the financial markets and the factors that influence them.
He has written for the Motley Fool, Gurufocus and ValueWalk among others. Rupert has also founded and managed several businesses, including New York-based hedge fund newsletter, Hidden Value Stocks, written over 20 ebooks and appeared as an expert commentator on the BBC World Service.
He has achieved the CFA UK Certificate in Investment Management, Chartered Institute for Securities & Investment Investment Advice Diploma and Chartered Institute for Securities & Investment Private Client Investment Advice & Management (PCIAM) qualification.
-
House prices are falling in London but how does it compare to the rest of the UK?
Advice The capital remains the most expensive part of the UK to buy a property, but it isn’t being as badly hit by the housing market slump. Where are London house prices heading?
By Marc Shoffman Published
-
Will a Santa Rally provide festive cheer for investors this year?
News Equities often get a seasonal boost during December - will there be a Santa Rally in 2023?
By Marc Shoffman Published
-
Halifax: House price slump continues as prices slide for the sixth consecutive month
UK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
By Kalpana Fitzpatrick Published
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?
UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
By Marc Shoffman Published
-
Pension savers turn to gold investments
Investors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
By Ruth Emery Published
-
Where to find the best returns from student accommodation
Student accommodation can be a lucrative investment if you know where to look.
By Marc Shoffman Published
-
Best investing apps
We round up the best investing apps. Looking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go?
By Ruth Emery Last updated
-
The top funds to invest in - November 2023
Tips Investors are focused on income strategies and FTSE heavyweights. We look at what investors have been adding to their portfolios in the last month
By Vaishali Varu Last updated
-
The world’s best bargain stocks
Searching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
By Andrew Van Sickle Published
-
Revealed: the cheapest cities to own a home in Britain
New research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
By Ruth Emery Published