The number of people buying gold for the first time has soared to levels not seen since the start of the pandemic, as the escalating war in Ukraine sparks a rush to safe haven investments.

However, novice investors, who pushed the price of the precious metal to a record high, lost out as long-term holders of gold took advantage of higher profits to immediately push the value back down.

New accounts at BullionVault, the world’s largest online investment service for gold, have risen at the fastest rate since March 2020 this week. There was increased interest in the precious metal among DIY investors as it is seen as a store of value, amid the deepening crisis in Eastern Europe and warnings of a sustained period of high inflation. 

The gold price rose from £1,420 at the start of March to break a new record surpassing £1,580 this week. However, the record level lasted only minutes as more experienced investors took advantage. 

Adrian Ash, of BullionVault, said the gold price was being kept from rising further by longer-standing investors who were selling and taking profits. He said there has been a split among those who were panicking now versus long-term investors.