The gold price decouples from paper gold

The global spread of the corona virus has largely paralyzed the economy. There is panic on the financial markets and there is great uncertainty. Numerous professional and private investors are fleeing to the safe haven of gold.The demand for the yellow precious metal currently exceeds the scarce supply. It is also interesting to note that the price of physical gold in the form of bars and coins is decoupled from the price of “paper gold”, which is traded as derivatives or certificates. In the future it will be shown whether the gold promised is really in physical form or whether the emperor is literally naked when it comes to paper gold.

 

Buying physical gold is currently challenging

Precious metal traders such as Philoro Edelmetalle, Degussa or pro aurum had to close their branches because of the corona virus. The purchase was and is only possible in the online shop. Due to the current situation, the demand for physical gold or silver is significantly higher than the supply. Numerous investors are currently trading out of fear of the collapse of the central banking system.The Fiat money should be exchanged for the ultimate money, namely gold, as soon as possible. The situation on the gold market was exacerbated by the fact that the Swiss refineries Valcambi, Heraeus and Pamp had to stop the production of bars and coins. In this context it should be mentioned that almost 70 percent of all gold bars worldwide are manufactured in Switzerland.The precious metal traders have therefore run out of most products. Many banks stopped trading gold years ago. Buying gold is more difficult than ever for private investors.