Physical Gold Limited reports a rush for wealth protection as Lehman anniversary reminds investors of credit risk

credit risk

Global credit risk

London, September 23 – September 15th marked the fateful day when Lehman Brothers became the biggest bankruptcy in corporate history. It marked a tipping point in the financial crisis which was to bring the global financial world to a halt.

Significantly for many, it represented the unthinkable happening. A huge 158 year old institution going under while the UK and US governments refused to help.  Unfortunately, this unprecedented credit risk shock now seems common place with a record number of bank failures in 2009.  The consequence to people’s mindsets, is that the fear of savings and investments being wiped out is very real.

Physical Gold Ltd, a UK based gold dealer, has seen a huge surge in public interest in buying gold as a means of wealth preservation against the growing credit risk. As the first bullion house to advertise its message on UK radio, the response from the listening public has proved remarkable.

Jonathan Rose, President of Physical Gold Ltd and its sister company Capital Gold Group, Inc in the US, said: “The last decade has seen a massive uptake in physical gold awareness and ownership in the US. It is only in the past year or so, that the UK public have started to become aware of gold’s value as portfolio insurance, and the realisation that it is not just an asset for the elite.” Physical Gold Ltd offers investors the chance to invest regularly into gold if they don’t have liquid assets to switch into the precious metal, making it truly accessible to all.

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Owning the physical gold itself, as opposed to a paper mining stock or other paper assets, provides investor comfort as they hold no counterparty exposure whatsoever. The value of the gold coins or bars can never go to zero, due to its intrinsic value as a tangible asset. This resonates particularly loudly with investors while such bankruptcies as Lehman Brothers and General Motors remain fresh in everyone’s minds. The recent TV interpretations of Lehman’s demise on various channels have reminded worried investors of the dangers of paper assets.

Physical Gold Ltd look at ways for investor’s to gain exposure to the physical gold market in the most efficient way. Amongst these are ways to invest in gold coins that are totally tax free to UK residents, and receiving up to 40% discount off the gold price by placing gold bars into their SIPP pension.

In an interview today, Dan Fisher, CEO of Physical Gold Ltd, said: “The message from the public has been unanimous. Everyone understands the qualities gold offers as an investment, and the interest in being proactive with their savings is high. But up until now, they were unsure how to buy gold, and which type of gold to buy. We make that process easy, and highlight methods of investment to maximise returns.”

With most bank deposits currently below 1% due to the record low interest rates, gold investment is providing a great alternative, with the underlying $ price up over 15% so far this year.  With UK unemployment and borrowing at record highs, it seems the UK gold rush is set to stay for some time.

Physical Gold Limited is one of the premier providers of physical gold and other precious metal assets in the UK. With headquarters at Tower 42, in the City of London, they can be reached on 020 7060 9992.

Website: www physicalgold.com

SOURCE: Physical Gold Limited

Daniel Fisher

Daniel Fisher formed physical Gold in 2008, after working in the financial industry for 20 years. He spent much of that time working within the new issue fixed income business at a top tier US bank. In this role, he traded a large book of fixed income securities, raised capital for some of the largest government, financial, and corporate institutions in the world and advised the leading global institutional investors. Daniel is CeFA registered and is a member of the Institute of Financial Planning.

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