Gold coins and bars in short supply, premiums exploding

Capital Markets • April 2, 2020, 6:45AM EDT
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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. 

AUTHOR

Yogita Khatri profile picture Yogita Khatri

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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