Gold coins at 'bargain' price causes record demand


Dealers are reporting a surge in demand for gold coins due to a record fall in the  price of bullion.

Spot gold prices have suffered the biggest fall since the 1980s closing at a low of $1,321.35 an ounce last month.

Head of Research Adrian Ash from gold investing group BullionVault said he received reports of some dealers running out of gold coins and bars due to record demand.

BullionVault have seen strong demand from the UK and global markets in particular India and China.

The second week in April was BullionVault’s best week for new accounts which rose 250% from the week before.  Adrian Ash commented;

“Spring 2013’s bargain hunters are moving fast in gold and silver and quickly backing their view with actual investment.  The initial liquidation in gold totalled only 1% of client gold holdings in BullionVault and that was primarily profit-taking by longer-term customers, rather than panic selling by more recent buyers.”

Closer to home, the Scoin Shop which sells gold coins at Westfield Shopping Centre said sales of Kruggerand increased 468% in the last week of April, due to opportunistic investors looking to cash in on the cheap rate.  Founder of the chain Alan Demby said;

“Since the gold price has dropped we have seen an enormous interest in buying gold at what is seen as a competitive rate.  Many of our existing clients in both the UK and South Africa see it as a tremendous buying opportunity they would otherwise not have.”

 

This article is provided for news purposes only and does not constitute either financial advice nor a recommendation of investment.


  • Date posted:
    03/05/2013
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