London Gold Dealer Runs Out of Bullion as Truss Budget Shocks

• London Gold Dealer Runs Out of Bullion as Truss Budget Shocks
  by Eddie Spence, https://www.bloomberg.com/ , 1 Oct 2022
  * Bullion priced in sterling came close to a record last week
  * Brokerages see surge in demand from British retail investors
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  When the pound slumped as Kwasi Kwarteng presented his mini-budget, some Britons rushed to the safety of a haven that’s recently lost its luster: gold.
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  As the UK currency slid to an all-time low early Monday, bullion priced in pounds climbed close to a record. That would typically encourage selling and deter buyers, but this time round the turmoil in British bond and currency markets increased the allure of the precious metal.
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  “Buying has increased exponentially,” said Ash Kundra, who runs coin dealer J Blundell & Sons in London’s historic Hatton Garden jewelry quarter. “I keep running out of coins, I keep running out of bars.”
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  The rush for gold in the UK contrasts with the bearish sentiment that’s seen dollar prices for the precious metal slump by more than 20% from a March peak, as the Federal Reserve’s aggressive monetary tightening makes the non-interest-bearing asset less attractive. Still, bullion’s status as a hedge against inflation and currency debasement is keeping demand from retail investors strong.
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