Sales of minted gold bars have climbed to the highest level since 2013. Still, the suppliers have been pulling out their efforts to provide amid the surge of demand. The demand for gold prices is rapidly increasing. With the widespread use of COVID-19 and the unstable global economy, investors are coming together with precious metals. Moreover, suppliers seemed to be struggling to deliver gold bars, and price remains constant.
Due to the increasing demand for production Australia’s largest gold refinery is in the position to witness a major fall. Production of kilobars has widely grown but deliveries have been difficult.
The issues have been majorly affected by the global gold markets. Prices have been released across the world. New York gold has been trading on the premium position of $70 over London spot prices.
Moreover, the situation of gold depends on the supply chain.It might be a critical problem to point out who merely believes Bitcoin as an alternative source of our digital world.
With the spread of COVID-19, the markets are moving quicker and supply-side issues can significantly affect prices. The suppliers are back up with the orders where some of them would raise questions if the supply chain breaks down in the future. This could see gold price follow the footsteps of oil.
This unique situation makes us aware of a potential case for Bitcoin. With the shortage of gold, cryptocurrency has rapidly pointed out the physically delivered ‘safe haven’ assets.
The demand for gold may increase, but investors are expected to be caught waiting for their precious metal for a longer term.