Once again, gold is becoming the haven of people who do not want to get caught in a possible crash. Greece leaving the Union is becoming more and more of a possibility as the days tick by without a viable solution to the money pickle the country is in. Investors are starting to get uneasy and are beginning to stockpile on their gold supplies as a result.
The currency wars are doing nothing to ease everyone’s doubts about the Eurozone coming out of this situation on a positive note. Analysts are seeing the gold rush fever reaching its highest peak in the last years. Precious metal dealers recorded sales approximating a total of ninety-six million pounds worth of coins and bars for 2014, a figure that the current year looks to surpass.
Demand for one kilogram gold bars currently has an estimated worth twenty-six thousand pounds each, which is an increase of seventy-four pence as compared to last year. Authorities are still collecting the average prices of 2015 sovereigns for dealers in the UK, though the beginning of the year has already recorded some very interesting sales. There are reports circulating regarding the Britannia going for as much as eight hundred and sixty pounds.
The impending stampede for gold is leading some central banks to take aggressive moves that sent shockwaves across the global financial market. The most notable of these surprising tactics is from the Swedish Central Bank and the Swiss National Bank, who cut their key interest to zero and removed their currency peg, respectively.
It is unclear whether other nations will follow this lead or stay their hand a while longer to see how things go. Waiting on the sidelines is a fine strategy for now, but their window to make a move is closing with each passing day.