Revolut launches gold trading for Premium and Metal users
Revolut has launched gold trading for its Premium and Metal customers.
As wild fluctuations in exchange rates continue, other exposures – such as gold – will temporarily seem like better investments
Both sets can now invest in gold exposure which is backed by real gold held by the London Bullion Market Association.
Part of a new feature called ‘Commodities’, the new service will see prices streamed from the London interbank market for Precious Metals in the Revolut app.
The neobank will apply a 0.25% markup on weekdays and 1% markup in weekends on the rate with “no further fees or applied”.
Gold is not protected through the UK’s Financial Services Compensation Scheme, which means compensation on investment is not guaranteed if Revolut goes bust.
The challenger says that in “the unlikely event of Revolut’s insolvency”, all precious metal holdings would be sold and proceeds credited to users’ accounts.
Between 1998 and 2008, the price of gold nearly tripled. With the ongoing coronavirus outbreak, foreign exchanges are feeling the effects of an incredibly volatile market. As wild fluctuations in exchange rates continue, other exposures will temporarily seem like more appetising investments.
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The value of gold also rises when the price of living increases, which means it’s a good hedge against inflation. So, as the stock market falls gold soars, which also makes it a good bottom line investment which can diversify your investment portfolio.
Often referred to as the “crisis commodity,” gold is seen as a safe constant in times of both economic and geopolitical uncertainty.
“Access to gold is the latest step we’ve taken towards allowing our customers to further diversify their portfolio,” says Revolut’s product owner for Precious Metals Ivan Chalov.
“Much like investing in the stock market, many have felt closed off from obtaining access to gold, finding it difficult to know where to begin.
“We’ve made sure that obtaining access to gold exposure is as simple and low cost as possible, with users being able to trade at amounts that suit them.”
Revolut launched cryptocurrency trading in December 2017, and in July 2019 expanded out to commission-free stock trading,.
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