Gold demand is skyrocketing and providers are struggling to keep up

[ad_1]

Sales of minted gold bars have peaked since 2013. However, suppliers had difficulty delivering in the face of increasing demand.

The demand for gold is booming. Given ongoing concerns about COVID-19 and the global economy, investors are turning to precious metals in bulk. However, suppliers have had problems shipping gold bars and prices are still out of sync.

gold bar

The demand for gold is increasing

Bloomberg reported that Australia’s largest gold refinery is increasing production as demand increases. Kilobar production increased significantly at the Perth Mint refinery, but deliveries were difficult. The collapse of global supply chains has given many gold suppliers a headache.

The problems have had a significant impact on global gold markets. Prices were out of sync worldwide. As BeInCrypto reported last week, New York gold futures were sometimes trading at a premium of $ 70 above London spot prices.

Gold providers hope this is just a matter of short-term arbitrage.

“For every coin we make, whether gold or silver, we could probably sell five or six,” Perth Mint’s Richard Hayes told Bloomberg.

However, the situation shows the inherent dependence of gold on shocks in the supply chain. It is a problem that those who believe this have repeatedly pointed out Bitcoin

Bitcoin as digital digital gold “

Bitcoin is often compared to gold. The comparison makes sense: Bitcoin hopes one day to be a store of value like gold is today.

However, the current COVID-19 crisis has made the limits of gold clear. The markets are moving much faster today, and delivery problems can have a significant impact on prices. As a result, suppliers are supported by orders. Some would even argue that if the supply chain were broken further, the price of gold could follow in the footsteps of oil.

The special circumstances speak for Bitcoin. Since fears of a gold shortage have arisen, cryptocurrency proponents have quickly pointed out that physically delivered “safe havens” have constraints on assets.

Bitcoin has recently shown a smooth correlation with gold. For much of March, the two asset classes followed closely. For every 1% increase in the price of gold, Bitcoin would skyrocket by 10%, as BeInCrypto reported last month. Unlike gold, the cryptocurrency market is also open 24 hours a day, 7 days a week, and the arbitrage opportunities for Bitcoin are slim. This means that bitcoin is exceptionally expendable compared to gold.

Gold demand may increase, but some investors may wait longer for their precious metal than they want. Perhaps this is the time when you should start seriously examining Bitcoin.



Do you use telegram? Join the Telegram trading community to get exclusive buy and sell signals for cryptocurrencies, educational content, discussions and project analysis!

Join the Cryptocurrency group on Facebook to comment on the latest news, share the best blockchain projects and trading signals, and win the market

Disclaimer of liability. Read moreRead less

As a leading blockchain and fintech news company, BeInCrypto always strives to comply with strict editorial guidelines and the highest journalistic standards. With this in mind, we always encourage and encourage readers to do their own research into the information contained in this article. This article is intended as news and is for informational purposes only. The topic of the article and the information provided may have an impact on the value of a digital or cryptocurrency asset, but is never intended. Likewise, the content of the article and the information contained therein do not intend and do not intend to provide sufficient information for a financial or investment decision. This article is not specifically intended as financial advice, it is not financial advice and should not be construed as financial advice. The content and information in this article have not been prepared by a certified financial professional. All readers should always conduct their own due diligence with a certified financial professional before making an investment decision. The author of this article may have any amount of Bitcoin, cryptocurrencies, other digital currencies, or financial instruments at the time of writing, including but not limited to those contained in the content of this article.

[ad_2]

Add Comment

Your email address will not be published. Required fields are marked *

I accept the Terms and Conditions and the Privacy Policy