2016 has been a landmark year for gold and silver, with increasing market volatility and uncertainty surrounding the EU referendum and US election leading the precious metals to soar in price. Pre-tax profits at BullionVault, the fintech market-leader for physical gold and silver investing, grew 43% in the 12 months ending 31st October 2016, reaching £5.6m (unaudited) on turnover up 12% to £420 million (unaudited).
Including peer-to-peer volumes, where BullionVault clients buy and sell directly with each other, the platform was used to trade £689m (unaudited) of physical gold and silver – higher by 28% from 2015 – in an average of almost 5,000 deals per week.
Launched in 2005 and now used by more than 64,000 people and businesses across 183 countries, BullionVault.com enables private investors to access the low costs of the wholesale gold and silver markets. Trading as little as 1 gram at a time using BullionVault’s website or smartphone apps, investors cut their costs by four-fifths or more versus traditional ‘retail’ bullion products such as coins and small bars.
Compared to national central banks, BullionVault’s clients are now the world’s 47th largest holders of gold, owning 37.1 tonnes between them. All stored in specialist vaults in the user’s choice of London, New York, Singapore, Toronto or Zurich, that gold grew 6% by weight and 49% by value in the year ending 31 October, and is worth more than £1.1bn at this morning’s prices.
BullionVault’s financial year 2016 saw the heaviest net demand since 2012 for both gold and silver. Customers have since added more than three-quarters of a tonne of physical gold in November alone – the strongest month for net demand since the global financial crisis peaked in November 2011.
Robert Glynne, CEO of BullionVault, said:
“With the gold price easing back since Donald Trump’s election, this year’s jump in precious metals investing has grown again. Risk events such as the French and German elections look likely to shake financial markets still further in 2017. The ability to trade bullion at weekends or overnight, when stockmarkets and traditional dealers are shut, may prove as important as it did on June’s Brexit result. In our increasingly competitive market, private investors continue to choose BullionVault for simple, secure and low-cost access to physical gold and silver 24/7 online.”
June 24th, the day of the UK’s EU referendum result, saw record-breaking trading levels on BullionVault’s internet and smartphone platform, totalling well over two weeks’ business in one day.
More than 2,600 trades worth £10m were completed between midnight and 6.30am as the Brexit result became clear. A total of over 9,000 deals worth £30.5m were struck by the end of the day.
In the 12 months ending 31 October, the number of people living in the UK choosing to use BullionVault for the first time rose 90% from 2015’s count of new UK users. The total of their first deposits – ready to buy gold or silver – rose 120% from last year.
With a rise of 41% against the Pound in the 12 months to end-October, 2016’s gains on gold have been the highest since 1979 for UK investors, and the highest for silver since 2010 with an increase of 43%.