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U.K. Gold Demand Seen Rising

U.K. gold demand will get a boost from investors saving up for retirement if the U.K.’s Financial Conduct Authority adds bullion to its list of “standard assets,” brokerage GoldCore Ltd. said.

The Financial Services Authority, replaced last year by the FCA to oversee market regulation, published a consultation paper with the list in 2012, asking whether other types of investment should be added. Cash, bonds and exchange-traded commodities were included and physical gold was not. The regulator’s decision is expected by the end of June, Goldcore said in a report today.

“It should lead to an increased demand for gold and to gold being on the radar of more mainstream investors,” Mark O’Byrne, a director at Dublin-based GoldCore, which manages more than $200 million in bullion, said in a phone interview yesterday. “If that happened, it would contribute to gold being seen almost as a mainstream asset.”

The FCA rules apply to U.K. providers of self-invested personal pensions, designed for people who want to choose their own ways to invest pensions. Investment-grade gold was permitted for them since 2006 and featuring it on the regulator’s list would help raise awareness that pension funds can invest in physical bullion, according to GoldCore.

Source Bloomberg

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