From safety-deposit boxes in leafy west London to high-security facilities housing gold and silver in Frankfurt, companies that store valuables are expanding to meet demand.
A rush into haven assets that began during the financial crisis is getting a new lease on life from an upsurge in populist politics and a quickening of inflation. Two firms say they’re planning to open vaults in Europe capable of holding more than 100 million euros ($112 million) in gold, offering customers lower costs than exchange-traded products and protection from rising prices.
‘Inflation is a key concern for many of our clients,’ said Ross Norman, chief executive officer of bullion dealer Sharps Pixley Ltd., which operates a gold vault within walking distance of Buckingham Palace. ‘A safe-haven asset isn’t just about what you buy – it’s also about where you keep it.’
Political surprises like Britain’s decision to leave the European Union and the election of Donald Trump as U.S. president have shaken investors over the past year. At the same time, negative interest rates have persisted across much of Europe and inflation has shown signs of life, threatening to wipe out the fixed coupon payments offered by bonds and increasing the allure of storing wealth in a dark room with walls of tempered steel.
This post was published at bloomberg
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