London, (UrduPoint / Pakistan Point News – 26th Mar, 2020 ) :Gold, prized by investors in times of crisis as a safe haven, is experiencing surging demand in the face of the coronavirus outbreak — from both commodity traders and retail buyers.
The commodity has also rocketed as investors seek to guard against rising inflation — with many central banks injecting immense amounts of liquidity into the financial system to counter virus fallout.
– ‘Phone has not stopped’ – “The phone has not stopped ringing” because “demand has exploded”, said Alessandro Soldati, boss of Gold Avenue, the online retail arm of Swiss refiner and ingots producer MKS PAMP Group.
Some companies are encountering some issues meeting the sheer volume of demand.
But the main problem is logistical — because so many flights are cancelled because of the coronavirus outbreak.
Customers still however have the option of keeping their gold coins and bars in safes — because trading companies usually offer such storage solutions.
And if they do want to take physical delivery of the glamorous precious metal, then customers face the prospect of a long wait.
It has since fallen on modest profit-taking but remains at an elevated level of about $1,600.
“The industry as a whole is affected” by lockdowns at key facilities, Omar Liess told AFP.
“We are in the midst of an unprecedented crisis,” WGC chief executive David Tait noted on Wednesday.
“I have worked at the heart of financial markets for over 30 years and thought I had seen it all: Black Monday, Asian Currency crisis, the dotcom bubble bursting, and the global financial crisis. But this is different.
“We are reeling the wake of a health and economic shock which monetary and fiscal policy is ill-equipped to deal with. Like most asset classes, gold has been affected by widespread, rapid-fire asset sales and a dash for cash.