(Kitco News) The summer time gold rally, which noticed costs surge greater than $200, triggered document bullion gross sales at one European valuable metals agency.
Gross sales of gold bars and cash had been up practically 190% in the course of the summer time months, Degussa stated in a press launch printed on Thursday. Together with the gross sales information, the agency additionally reiterated its name for gold costs to be practically $200 by the tip of subsequent yr.
The most well-liked merchandise had been gold bars weighing one ounce and 100 grams in addition to the South African coin Krugerrand.
These document gross sales may very well be simply the beginning as Degussa chief economist Thorsten Polleit is projecting the $1,700 degree for gold in just one yr.
“The central banks make sure that the buying energy of cash continues to wane, which additionally drives up the costs of gold and silver. There is no such thing as a finish to this inflationary coverage, and I’d not be stunned if the value of gold surpassed $1,700 in round a yr – and this price ticket could not embrace any remaining crises,” Polleit stated in a press launch.
On high of gross sales, Degussa stepped up its purchases as clients rushed to promote their gold bars, cash, and jewellery with a purpose to make the most of the summer time rally. Degussa’s buy enterprise was up slightly below 30% between June and August.
“We have seen that many traders took benefit of this transfer to take earnings and turned their valuable steel into money. For instance, Degussa noticed a fivefold improve in its purchases in comparison with August 2018,” stated the agency’s head of buying and selling Oliver Heuschuch.
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