It is precisely at a time when investors have a great need for security that supply shortages of physical gold occur. However, Bitcoin could benefit from this development.The corona virus continues to spread and paralyze numerous large economies. For fear of the economic consequences, which can not yet be estimated, many investors sell their shares and go to so-called “safe havens”.
Gold is in short supply
Gold in particular is valued as a safe investment in times of crisis. So now too. The level of uncertainty among investors is so great that many of them no longer trust financial institutions with regard to the securitization and storage of their gold holdings. Instead, they opt for the supposedly safest form of investment: their own physical storage. However, the interest in bars and coins is now so great that the demand can hardly be met.However, this is only partly due to the high demand. In addition, the corona virus is causing supply bottlenecks: gold mines in South Africa and many mines in South Africa and Canada have now been temporarily closed due to fear of the spread of the corona virus. The Swiss canton of Ticino is also affected by such a shutdown. What many probably don’t know is that around a third of the world’s annual supply of gold is processed there. And since coin manufacturers and refineries are not considered to be essential companies, supplies are beginning to stall.