The situation on the Swiss gold market has worsened dramatically on Tuesday. Zuercher Kantonalbank, one of the biggest traders of the metal, still has enough gold in stock. But the situation at other traders is tight.
A week ago, finews.com reported how people waited in long queues at the Degussa Goldhandel shop in Zurich to buy bullion.
Only one day later, the company was forced to shut its business when the government ordered a lockdown of non-essential shops. The closure of the Degussa store didn’t obviously lead to a complete halt of gold sales, as some media reports seemed to suggest.
Surge in Online Sales
People interested in buying physical gold can order from the Degussa online store, according to Andreas Habluetzel. He said that demand had risen 30-fold in recent days.
The head of the Degussa Goldhandel store also confirmed that the supply of physical gold has come to a complete halt as all four Swiss refineries have stopped their deliveries.
Last Shop Standing
The supply of gold coins from abroad also has been halted because the national mints – mainly in the U.S., Canada and South Africa – have stopped their operations for the time being.
Degussa has reserves of bullion in Switzerland that should last for about two weeks with average sales, Habluetzel said. When it is out of stock, the company will stop selling gold. «We will most probably be the last to stop selling gold,» he added.
Plenty of Gold?
Zuercher Kantonalbank, one of the biggest sellers of gold in Switzerland, confirmed that demand for physical gold was very high. And with the limits on production in the Ticino region of Switzerland, which is the worst affected by the coronavirus and where most Swiss gold refineries are based, supply isn't as ample as it normally is.
Zuercher Kantonalbank nevertheless has plenty of gold in stock to satisfy customer demand. «The trade with precious metals is therefore still possible at Zuercher Kantonalbank,» the company told finews.com.
