As uncertainty continues to grow over the stagnant US economy, as well as the looming showdown over the Euro crisis, those worried about the security of the banking system are increasing putting their money in gold bullion, including coinage.
Rand Refining Ltd, who produce the world famous South African Kruggerand coins east of Johannesburg, have sold more and more as the year has continued. It is Kruggerands, along with Gold Sovereigns, that dealers are finding increasingly hard to replace as investors and collectors alike increase demand.
Rui Lola, a coin dealer in downtown Lisbon,Portugal, says his gold sales have doubled just this year, with stock draining faster than it can be replaced. He comments that where is the past his clients would tend to be of the older generation, now they are coming from all age groups and walks of life. “People are nervous about the banking system and the euro and believe that investing in gold will help them protect their savings,” said Lola.
We wrote previously in July on the increasing demand for gold coins, and as the economic woes continue, this does not currently look like a trend that will be changing anytime soon.