Brexit bullion: Fear of no-deal triggers Irish gold rush

Examples of gold bullion are on show at Merrion vaults in Dublin on January 7, 2019. In a vault under the streets of Dublin a pot of gold owned by anxious investors is growing every day Britain edges closer to leaving the EU without a deal. (AFP)
Updated 19 January 2019
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Brexit bullion: Fear of no-deal triggers Irish gold rush

DUBLIN: In a vault under the streets of Dublin a pot of gold owned by anxious investors is growing every day Britain edges closer to leaving the EU without a deal.
“They’re worried about a significant devaluation in sterling if there’s a hard Brexit,” said Seamus Fahy.
Fahy is co-founder of Merrion Vaults, a gold brokerage and safe deposit facility in the center of the Irish capital.
Over 2018 — as the prospect of Britain crashing out of the EU turned from a scare story into a very real prospect — he has seen a 70 percent rise in clients from the British province of Northern Ireland.
“Customers are taking money — physical money — out of the bank and they’re buying gold bullion with us to store it, and it’s a hedge,” Fahy explained.
There is no equivalent facility in Northern Ireland.
With the border only an hour away it is no long trip to secure peace of mind as Britain risks a split with the EU critics are branding a “cliff-edge Brexit.”
Set in the basement of an unassuming grey office block, Merrion Vaults does not advertise its presence to passersby, marked only with a coy plaque reading “Merrion Private.”
Down an elevator, past a manned security booth and a fingerprint scanner — as well as a hefty metal safe door — is a caged vault, ranked with 3,000 double-locked deposit boxes.
Their full contents are known only to clients. But Fahy knows that inside many are glimmering stashes of gold.
Numerous customers have spent over £500,000 (560,000 euros) on their precious nest eggs.
The most popular items are one ounce (30 gram) gold bars and coins: handsomely polished South African Krugerrands, Canadian Maple Leafs and British Britannias worth in the region of £1,100 (1,200 euros) each.
They have increased in value by around 10 percent in the past six months, according to Fahy’s ledger.
When news of the 2016 Brexit vote broke, gold surged as sterling plunged to levels not seen since 1985.
The result was a historic 22 percent jump in gold valued in British currency terms.
In December, when British Prime Minister Theresa May pulled the parliamentary vote on her Brexit deal, Fahy also saw a “big uptick” in demand.
Pundits saw that as the most foreboding indication yet of a no-deal Brexit on March 29.
The prospect of the fallout sinking sterling seems to be making investors skittish.
“In times of crisis you always see what’s called this ‘flight to safety’ — so people go into US government bonds, gold bullion, Swiss francs etc.,” said Fahy.
The future status of Northern Ireland — the so-called “Irish backstop” — is at the crux of the Brexit conundrum and has added particular concerns on the island.
“You often see local events driving local demand,” said Alistair Hewitt, head of market intelligence at the World Gold Council.
But Hewitt said that the Brexit gold rush may have already peaked in the rest of Britain, with “an upsurge of activity” around the vote itself.
“Over the course of the past two years that’s probably petered out a little bit. I think lots of investors have probably suffered a bit of Brexit fatigue.”


Samsung delays Galaxy Fold media events in China

Updated 22 April 2019
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Samsung delays Galaxy Fold media events in China

  • Instead of plaudits ahead of the phone’s launch on April 26 in the US, Samsung has instead received brickbats
  • The hashtag #foldgate trended on Twitter because of the smartphone issues

SEOUL: Smartphone maker Samsung postponed media events for its Galaxy Fold planned for this week in Hong Kong and Shanghai, a company official said, days after reviewers of the foldable handset reported defective samples.
The official did not elaborate on reasons or rescheduling.
Instead of plaudits ahead of the phone’s launch on April 26 in the United States, the South Korean conglomerate has been blighted by technology journalists reporting breaks, bulges and blinking screens after using their samples for as little as a day.
Samsung said it received “a few” reports of damage to the displays of samples of the $1,980 handset, raising the specter of the combustible Galaxy Note 7 three years ago which the firm ultimately pulled from shelves at massive cost.
The reviewers’ reports of broken screens went viral online and prompted the creation of hashtag #foldgate on Twitter.
Samsung has hailed the folding design as the future in a field that has seen few surprises since Apple’s iPhone in 2007. Chinese rival Huawei Technologies has also announced a folding handset, the Mate X.
The Samsung official on Monday said it had no change to its previously announced release date in the United States.
It plans to begin South Korean and European sales in May, and Chinese sales from an undisclosed date.