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Queues for coins as gold rush starts again
by Philip Scott

Gold: The rush is back on for the precious metal and investors have been snapping up coins such as the American Buffalo

'You have to choose, as a voter, between trusting to the natural stability of gold and the natural stability and intelligence of the members of the government.

'And with due respect to these gentlemen, I advise you, as long as the capitalist system lasts, to vote for gold.'

It would seem that the above maxim from Irish playwright, George Bernard Shaw, is ringing very true during these uncertain times.

As faith in the banking and political system rapidly flounders, nervous savers are once again rushing to that most traditional of safe-havens; gold and demand for the metal in physical form has soared.

London based, international gold dealers, ATS Bullion, has enjoyed a surge in business as a result of wary savers wanting to get into the 'safety net' of gold.

Sandra Conway of ATS Bullion says: 'People appear very keen to get into gold.

'Our turnover has probably doubled in the past year and in the past few weeks alone we have seen a very large rise in interest in gold. We have actually had queues of people here.'

After reaching the landmark $1,000 per troy ounce back at the start of the year, the price of gold pulled back, today it is trading at $880 an ounce.

And despite the rush to the precious metal, presently there are very few sellers of physical gold.

Manufacturers of gold bars and gold coins across the world are desperately attempting to keep up with the rise in demand, however stocks are diminishing, especially sought after Krugerrand coins.

Named after Paul Kruger, who led the Boer resistance to the British at the turn of the 19th century, the coins were first minted in South Africa in 1967.

During the 1970s and 1980s it was illegal to import Krugerrands into the UK because of apartheid, but they are in high demand and the £547 coins are being quickly scooped up by cautious investors.

But so large is the demand that the Rand Refinery is now open all week long, as is the Austrian mint, which all manufacturers gold coins.

The US Mint has even been coerced into stopping sales of its American Buffalo solid 24 carat gold coin because it was running out and limited the availability of the 22 carat American Eagle. The Mint had sold 164,000 of the coins this year, up 54% from the same period a year ago.
 



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