As the economic climate worsens in many countries worldwide, public desire for gold has steadily risen. In particular, gold coins have become in near-ubiquitous demand in those countries worst affected by the twin perils of rising inflation and crippling debt.
The most grievously affected Eurozone nation, Greece, has been at the centre of recent reports of popular clamour for gold coins. A vast EU/IMF bailout package was recently granted to the country on the condition of heavy austerity measures being implemented.
The resulting effect on personal livelihoods and future prospects has led many Greeks to seek solace in physical sources of wealth – with gold and silver coins being among the most popular choices. According to credit rating agency Moody’s, around 8% of bank deposits have already been withdrawn to buy gold.
Greece is not the only country in which gold coins are being looked to as a safe haven. Reuters has reported that in the face of high inflation and intense currency depreciation against the dollar, Iranians are buying gold coins en masse, attracted by the relative safety of hard currency. Though it is far from certain as to what this increased demand may mean for world gold supplies, it is not improbable that a squeeze may occur, as many more seek a safe haven.