BullionVault weighs in with tonnes of gold

Investment services firm BullionVault has been boosted by the recent bull run on gold as people look for a safe haven for their cash.

The group now holds more gold bullion bars on behalf of its clients than the central banks of Canada, Ireland and Mexico combined, after seeing its customer numbers soar by a third during the past year.

The total value of the gold it holds in secure vaults in London, New York and Zurich rose by 17 per cent during the year to the end of October to 21.5 tonnes.

The rise in the value of gold held for clients was even greater, with this measure soaring by 57 per cent to 587 million.

The group also saw an enthusiastic take-up of silver holdings, which it began offering in January, with these reaching 88.9 tonnes worth 44.5m by the end of October.

The value of gold has soared to a record high during the past year as investors increasingly seek a safe haven for their cash.

Paul Tustain, chief executive and founder of BullionVault, said: "Whereas 2008 and 2009 saw physical gold demand respond to specific financial shocks, this year demand has risen in a much steadier, more consistent manner.

"Intractable problems of government debt and currency debasement worldwide make gold more than just a short-term crisis hedge.

"US inflation fears, the on-going eurozone debt crisis, and the most negative real returns on UK bank-deposit accounts since 1977 mean gold ownership has become a more considered, longer-term decision."

Trading volumes on the group's online gold and silver exchange grew by nearly 26 per cent during the year to 863m, while the company's own turnover was up 8.6 per cent to 301m.

Pre-tax profits before exceptional items rose by 15 per cent to 3.96 million. The firm claims some 21,000 people from 97 countries now use its services.