Wednesday, March 25, 2020

Gold Bars in Short Supply Due to Coronavirus Disruption


Metals dealers have reported a growing global shortage of gold bars, as the coronavirus outbreak both disrupts supply and stokes demand, with one business comparing the frenzied buying of the yellow metal with the consumer rush for toilet roll, reports the Financial Times.

Of course, shortages can be resolved with higher prices so technically FT is off a bit on its reporting.

What the financial newspaper really wants to say is that dealers have been cleared of inventory and because of lockdown-related supply disruptions they are not able to replenish their supplies at quoted market prices.

Notes The Times:
Europe’s largest gold refineries have struggled to keep up because of the region’s widening shutdown. Valcambi, Pamp and Argor-Heraeus are all based in the Swiss region of Ticino, near the border with Italy. Local authorities announced in recent days that production in the area was to be temporarily halted.
I trust most EPJ readers are well stocked already.

-RW



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