The stock market plunge has triggered a gold buying spree with a popular fund that tracks the metal accepting the most cash on a single day since the financial crisis on Tuesday. Index fund provider ETF Securities told Telegraph Money that February 9 saw the most money flow into Gold Bullion Securities, its gold tracking fund, since January 2009. Investors poured in £239m.
James Butterfill, head of research, said investors had become more cautious and were buying gold to shelter from stock market volatility. He said the firm’s gold products had attracted £500m of new money so far this year. The surge in demand has pushed the price higher, with spot prices up by 11pc from $1,088 to $1,225 over the past month. Mr Butterfill also noted that £221m had been invested into the company’s oil tracker funds in that time, with brave investors betting on “black gold” staging a recovery. READ MORE
