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.

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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. 

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.

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