Invest in gold? - gold disappears from the market during the coronavirus pandemic

Investing in Gold – Investors are buying up what glitters

Firstly, during times of uncertainty, investors heavily invest in gold to protect their savings. This increases in the case of the current coronavirus pandemic. The situation is similar all around the world. Investment coins and ingots are unavailable. At present, it is only possible to buy one ounce of Austrian gold Wiener Philharmoniker. Similarly, other gold traders say.

There was a massive demand for the precious metal in the world. In March, following the outbreak of the coronavirus pandemic, daily sales increased by 400 percent and approached normal weekly sales. Dozens of people were buying one-time gold for more than hundreds of dollars a week. Consequently, the volume of these deals has tripled.

Hard to get

The enormous demand around the world made physical gold challenging to get, even for the domestic market, adding that the increase in demand for “gold bars and coins is so sharp that some foundries and mints sold their entire stock in record time “.

The growing demand and production problems caused the lack of gold bars and coins, which are popular among retail customers. And all over the world. Rob Halliday-Stein, CEO of BullionByPost, UK’s largest online gold trader, said gold sales had quadrupled. “It’s unprecedented,” CNN Business said.

The same is true for other traders. “People want to buy gold, not to sell it. We have a buyer list. We contact our clients by email to find out who wants to sell their gold”. Said Mark O’Byrne, founder of Irish GoldCore, Bloomberg. He adds: “There are currently one or two sellers for every 99 buyers.”

In addition to the scourge of investors in safe investments, such as gold, Swiss francs, and German government bonds, the physical gold market has also been affected by the fact that many golds or mint processors have reduced or stopped production due to the current coronavirus pandemic.

Production outage

The world’s largest refineries are located in Switzerland, in the Ticino region on the Italian border, which is a big problem. In Ticino, however, production is expected to resume at least to a limited extent in the coming weeks. It would help to secure the supply of, for example, gold bars.

In addition to small investors, gold is also betting on a number of the world’s wealth. Individually, Egyptian billionaire Nagib Saviris has bought shares of gold miners in recent days. In the Russian Polymetal, the wealthiest Czech, Petr Kellner, has a share.

The price of gold has now exceeded $1,600 per ounce. Price developments in recent weeks are reminiscent of market behavior during the financial crisis, and beyond. During this year, the amount of yellow metal fell significantly in March. But right now is rising once again.

If you want to know more about how to invest in gold, here you can find the price chart.