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Posted on 6 Jul 2015 by BullionStar

Oxi (No) is the vote – Increased demand for physical gold

PRESS RELEASE

 6th July 2015
For immediate release

Singapore: Demand for physical gold has increased significantly in the last week leading up to the Greek referendum and is expected to continue to increase following Sunday’s outcome of the referendum with 61 % voting No.

Mr. Torgny Persson, CEO of BullionStar Pte Ltd says: ”Demand for gold has more than doubled in the last week compared to previous weeks and is at much higher levels than what is normal for the season. We’ve seen a large influx of new customers not only concerned about the Greek situation but also concerned about the state of the global economy with its unprecedented debt levels.”

Gold refineries and wholesalers around the world are likewise reporting higher sales and people are concerned about the risk of looming gold shortages.

Mr. Persson continues “We are still well stocked on most products but replenishing is starting to become more challenging. If the demand continues, there’s a risk for delivery delays ahead.”

The Greek debacle shows the advantage of holding gold bullion when capital controls are introduced.

Gold is keeping its value over time, gold is liquid and gold is a great asset to preserve wealth and savings in over time.

Greeks saving in gold would have had their savings accessible with no risk of losing their deposits from a potential bail-in.

Mr. Persson on the gold price development: “The price of gold has been fluctuating in a narrow range this year, up 0.6 % since the start of the year. Increased physical demand doesn’t paradoxically enough always translate to increased prices as the price of gold is set on the paper markets. As part of a hedging strategy, when people choose to sell their paper gold and buy real physical gold, the price may actually decrease even though there is no net change in holdings.”

Snap3
Source: BullionStar Charts

Media contact:
Mr. Luke Chua, Sales Manager BullionStar Pte Ltd
E-mail: luke.chua@bullionstar.com
Phone: 6284 4653

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  • Doolie

    I have for many years not understood how a gold seller can survive in a market where the cost of gold is ambushed and can seriously plummet.

    In a normal world the value of ones stock goes up as prices go up naturally. But in the gold world, it could be possible to buy stock and the next day it is worth less than market price.

    We have had in history such large falls in the price of gold that it confuses me how a retailer survives such ambushes.

    The articles says you hold stock, I can not imagine any one would hold stock and then sell at a loss.

    I hope Torgny can reply to this mystery of mine

    • bullionstar

      We don’t only survive but thrive. Yes, our margins are very very tiny compared to any other industry but we have a high turnaround pace for our stock and an extremely streamlined organisation built on system automation and hard work by the owners.

      But I can echo the question and wonder how some other bullion dealers survive. I do know that many are not profitable as opposed to us though and need capital injections.

  • Lao Tzu

    The gold market is dead. Just because QE is devaluing the currencies does not mean all the currencies will bid for gold, specifically because gold is rarely consumed. It is better to hedge against inflation via many other assets, Apple stock or real estate for example.

    • Gustav

      Your ignorant post reveals your shamelessness to use Lao Tzu as the username.

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