The supply chains for physical gold to private customers are disrupted or cut off in more and more places. In the Krugerrand gold coin country South Africa, preparations are now being made for the closure of the gold mines.
Gold in high demand
Do you have a gold Krugerrand coin? If you urgently need gold these days, you need a lot of patience or a thick wallet. There are still gold coins and gold bars to buy, but the supply is dwindling and the premiums are increasing. And soon the supply of the crisis metal could be cut off completely. Because now mining companies to curb the corona pandemic and protect their employees are starting to shut down.
South Africa is closing
The authorities in South Africa are planning the shutdown. This means that apart from grocery stores, pharmacies, banks, petrol stations and other supply services, all companies would have to close their doors – including the gold mines. For example, Bloomberg plans to shut down the entire mining sector, with the exception of a few coal mines, to maintain energy supplies. “This would be unprecedented in the history of South African mining,” said Roger Baxter, CEO of the Minerals Council South Africa. “There were certain times when components of the industry were closed, for example during the Second World War, but this is unprecedented,” said the industry representative.