US gold shortage due to coronavirus

US, WASHINGTON (ORDO NEWS) — The United States has a shortage of gold after a sharp increase in demand for the precious metal amid the spread of coronavirus, writes The Wall Street Journal. In addition, an increase in demand led to an increase in the price of gold futures, which, according to experts, is popular with conspiracy theorists, and is also a reasonable addition to investment portfolios.

In the US, demand for gold rose sharply in the context of the spread of coronavirus, and therefore there is a shortage of gold bullion and coins on sale in the country, The Wall Street Journal reports.

Gold
File Reuters

So, dealers sold all stocks of gold or temporarily closed. A major Swiss financial conglomerate Credit Suisse Group AG, casting gold bars since 1856, urged those wishing to purchase them and not to bother him about this.

The publication notes that due to a lack of gold, Wall Street bankers turned to Canada for help. The Royal Canadian Mint is inundated with requests to ramp up gold bullion production that could be shipped to New York.

Amanda Bernier, senior sales manager, said the yard is facing ” an unprecedented level of demand ” for gold. At the same time, in connection with sending a significant part of the staff home because of the coronavirus, the state-owned company produces only one kind of ingots.

However, the price of gold futures this week rose by about 9%. According to the Royal Mint of Great Britain, the price reached a seven-year high.

“When people think that they cannot get something, they begin to want it even more. Look at the toilet paper,” explained George Gero, an employee of RBC Wealth Management, a brokerage company.

At the same time, gold is in particular demand among people preparing for survival after the disaster, and conspiracy theorists, but it is also a reasonable addition to investment portfolios, since its price is usually relatively stable.

WSJ recalls that US gold reserves are located at the Fort Knox military base and at the Federal Reserve Bank of New York. These stocks are not intended for sale on the free market, but are stored as a national reserve.

In the event of a shortage of gold, its reserves are usually replenished in London, where over 8.2 thousand tons of this precious metal is stored. It is delivered to New York in batches in safes by passenger aircraft, which currently do not fly up to the sky due to the coronavirus.

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The article is written and prepared by our foreign editors from different countries around the world – material edited and published by Ordo News staff in our US newsroom press.