Need for Gold in Hamburg, Germany

People hamster toilet paper, hoard mineral water – and buy gold. The corona crisis apparently leads many to invest in precious metals now. The coin trading company Emporium in Hamburg-Hamm, Germany is currently overrun with inquiries. “It goes from the entrepreneur to the student who buys five silver ounces for 100 euros. This is unusual. We have never had that before,” reports Ulrich Reckhard, chief dealer at Emporium.

 

Exchange price not exploded

What is special about the current crisis: Due to the shutdown of numerous economic sectors around the world, many mines have closed and transport routes have been interrupted. The supply of gold and silver is therefore at risk. However, even though the stock market price is high, it has not exploded. At 1,500 euros per troy ounce, it remains below the all-time high of the economic crisis in 2008.

 

Krugerrands well above the gold price

In fact, the price of gold bullion coins has completely decoupled from the actual purchase price. Chief dealer Reckhard explains that the price for a Krugerrand in mid-January was 35 euros above the gold price. “At the moment they have to expect at least 270 euros over gold,” said Reckhard. Nevertheless, people bought: “Yesterday I had a phone call. A young family man called and wanted to invest 10,000 euros. That was all he had.”