Panic buying hits the gold investment market
In the past week we have seen a return to panic buying in the gold investment market.
People from all walks of life and of varying means have moved quickly to secure gold investment. The well publicised problems within Europe have woken investors to the realisation that the single European currency could be about to collapse.
The domino effect of Greece defaulting or withdrawing from the Euro will doubtless lead to the demise of Spain, Portugal, Italy and Ireland. Even the heavyweights such as France will be dragged into the battle for survival due to their huge exposure to the European banking system.
Combined with the growing urgency for the US to increase their overdraft facility or risk defaulting themselves, the general public have realised that everyone will be affected by these events.
They have quickly moved to buy gold coins over the past week to protect against the anticipated impact that a monetary collapse will bring. While equity, bond and property markets would be hit hard by a Euro collapse, gold should go through the roof as it benefits from a flight to safety.
The huge spike in demand over the past week has already brought stories of supply shortages, especially with the most sought after investment coins such as Krugerrands and Sovereigns.
We still have decent supplies of these coins, but we highly recommend buying sooner rather than later, so you don’t miss the boat before the anticipated price spike, or even worse find that you cannot find a supply of gold coins.