Investors are resorting to gold as Sir Keir Starmer’s future remains in question, new data has suggested. Escalating geopolitical tensions, rising government debt, stubborn inflation and concerns over the resilience of banking systems have also fuelled the shift, the Pure Gold Company thinks.

Stats show that there has been a 133% surge in demand amongst investment bankers, lawyers, accountants and senior finance professionals, and 53% of gold is now owned by “first-timers”, the firm said. Meanwhile, there has been a 318% increase in investors turning to physical gold within pensions and SIPPs as they “scale back exposure to stock markets”, according to specialists.

Joshua Saul, the company’s CEO, said: “Customers repeatedly tell us they view the recent weakness in the gold price as a significant buying opportunity. Many believe the current price does not properly reflect the level of political and economic instability building beneath the surface.

“A growing number of customers are specifically referencing fears surrounding the political future of Sir Keir Starmer and the wider stability of the Labour government.

“Many are openly questioning whether the UK could once again enter a period where nobody knows who will be leading the country by the end of the week.”

Other macroeconomic factors are playing a part, Mr Saul added.

He said: “Many report concerns over counterparty risk within the banking system, frustration that cash savings continue to lag behind the real cost of living, and worries that inflation will continue eroding purchasing power over the coming years.

“Unlike many traditional investments, UK legal tender gold coins can also be sold free from capital gains tax for UK residents, while remaining highly liquid and easily convertible into almost any major currency worldwide.”

The Makerfield by-election is to take place on June 18, and could see Andy Burnham enter Parliament.

He could then challenge the Prime Minister for the leadership of the Labour Party and No. 10.

Were there a direct contest between Starmer and Streeting, YouGov polling suggested that Sir Keir would win, with 65% of Labour members saying they would vote for him, versus only 15% who would seek to replace him with Streeting.

In alternative contests, Wes Streeting loses by wide margins to each of Andy Burnham (who would be backed by 80% of Labour members to Streeting’s 10%), Angela Rayner (by 70% to 19%) and Ed Miliband (by 58% to 28%).