Gold coins and bars in short supply, premiums exploding
April 2, 2020, 6:45AM EDT
1 min read
Small gold coins and bars, most popular among retail investors, are in big shortage due to high demand and supply disruptions amid coronavirus.
Gold dealers are desperately looking for clients those who want to sell the yellow metal, and are offering a rare 10-15% premium over spot prices, Bloomberg reported Thursday.
“We have a buyers’ waiting list and we emailed our clients seeing who wished to sell their gold. At this time there is roughly only one or two sellers for every 99 buyers,” Mark O’Byrne, founder of Dublin-based dealer GoldCore, was quoted as saying in the report.
Markus Krall, CEO of German precious-metals retailer Degussa, said he’s never seen such high premiums and demand before. Gold is currently trading at around $1590 per ounce at press time.
Last week, Goldman Sachs said it is time to buy the yellow metal. "Both the near-term and long-term gold outlook are looking far more constructive, and we are increasingly confident in our 12-month target of $1800/toz," it added.