Editors Note: The shortage of gold bullion coins and bars continues and appears to be deepening. It is not just smaller one ounce bullion coins and bars that are sold out and increasingly unavailable but also larger gold and silver bars including gold kilo bars (32.15 ozs) worth and 1,000 oz silver bars. Refineries, government mints and brokers around the world have raised premiums.
Gold Dealers Report Big Shortages of Small Bars and Coins
(Bloomberg) — When people are worried about the future they turn to gold to protect their savings. That’s rarely been more true than today.
Surging demand and disruptions from the coronavirus pandemic have created a shortage of the small gold bars most popular with consumers. Those who do manage to get their hands on metal have to pay up –- well above the per-ounce prices being quoted on financial markets in London and New York.
Some dealers are desperately contacting clients to see if anyone is willing to sell their gold bars and coins, and offering a rare premium over spot prices. Others have given up trying to trade altogether.
“People want to buy, not to sell gold,” said Mark O’Byrne, the founder of GoldCore, a dealer based in Dublin. “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.”
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|◆ Gold and Silver Coin and Bar Premiums – What Is Happening?|
◆ Premiums are higher on gold and silver coins and bars, both when you buy and when you sell, and may stay higher in the “new normal.”
◆ Bullion coin and bar premiums are not commissions and brokers only make a small component of the premium in what is a very low margin business.
◆ Beware of aggressive pricing strategies on coins and bars and focus on getting value with regard to premiums.
◆ GoldCore remains open for business and when they become available we are buying coins and bars from our government mint and large refinery suppliers and from our clients. While oremiums have surged, we have kept our premiums very competitive. We are paying 1.5% over spot gold to clients for gold kilo bars and higher premiums for smaller bars and bullion coins (1 oz).
◆ We are only selling to clients who have cleared funds on account and are on our Buyers List as we simply cannot meet the demand we are experiencing.
GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)
01-Apr-20 1594.25 1576.55, 1288.95 1270.23 & 1457.94 1442.86
31-Mar-20 1604.65 1608.95, 1299.61 1296.81 & 1461.52 1468.81
30-Mar-20 1624.35 1618.30, 1312.56 1305.97 & 1466.88 1466.02
27-Mar-20 1621.20 1617.30, 1325.33 1316.16 & 1473.18 1469.48
26-Mar-20 1620.10 1634.80, 1361.37 1358.19 & 1480.12 1487.01
25-Mar-20 1620.95 1605.45, 1357.22 1371.38 & 1494.84 1486.17
24-Mar-20 1599.50 1605.75, 1362.61 1371.47 & 1472.98 1489.49
23-Mar-20 1494.50 1525.40, 1288.86 1312.91 & 1399.60 1411.00
20-Mar-20 1504.45 1494.40, 1275.32 1258.28 & 1400.34 1391.59
19-Mar-20 1480.70 1474.25, 1285.54 1257.83 & 1369.94 1365.89
18-Mar-20 1506.00 1498.20, 1254.50 1271.22 & 1367.00 1378.04