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Harrods Selling Gold Bars
by Kerry Capell

Targeting wealthy investors looking for a safe investment, upscale London department store Harrods is now selling bars of pure Swiss gold bullion and coins displayed in a miniature vault.

Selling gold during a recession? Harrods believes the strategy makes a lot of sense. The dollar and pound are weak, interest rates are low, and markets are jittery. Gold prices, in contrast, recently hit a record high of $1,072 an ounce. And for wealthy investors, who comprise the luxury store’s core clientele, gold represents one of the few remaining safe havens.

A full-sized 12.5-kilogram bar (around 27.5 pounds) costs about $466,000 based on Oct. 15 prices. Harrods will sell a range of gold including coins, small one-gram gold bars, and the more substantial 12.5-kilogram bars. Harrods says it made a number of high-value sales the first day the gold range was introduced on Oct. 15.

But as any serious shopper knows, don’t expect a bargain at Harrods. The store says its premium on Krugerrand gold coins is currently set 11% above spot price—more than twice the average mark-up already paid by retail investors using typical U.S. and European coin dealers.


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