While investors are shifting masses of money to safe investment ports out of fear of the economic consequences of the corona crisis, a supply bottleneck in the crisis currency gold is making headlines.Precious metal traders report difficulties in replenishing gold coins and gold bars because trading in precious metals is also suffering from the consequences of the pandemic. According to experts, the current flood of money from leading central banks in the fight against the crisis should push the gold price further towards a record high.
“The large gold processors have been out for about a week and a half,” said precious metal trader Alexander Zumpfe from the Heraeus trading company. Many companies that are leaders in the processing of precious metals are based in Ticino, Switzerland. Only slowly and partially do they start up again. The canton lies on the border with Italy and, like in the neighboring country, all companies in Ticino that are not system-relevant had to stop their production.
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Equivalent alternatives are not in sight: “Smaller ingot manufacturers in other countries are unable to compensate for this loss of supply,” said Zumpfe.