Business News Asia
In times of crisis, people seek gold as a safe haven, and this is what happened during the COVID crisis. In Germany, where the last hyperinflation now occurred around 100 years ago, people are once again seeing risks that can be compared with that period of the Weimar Republic. As a result, demand for Krugerrand coins in Germany rose to a level not seen for three decades.
Richard Collocott, marketing director of Prestige Bullion the marketing agency of Krugerrand, said, “In the past 12 months to the end of November, more than 700,000 troy ounces were exported – more than 80 percent of them to Germany.”
Gold has made strong gains since the start of the pandemic and remains at strong levels above $1,800 per ounce. Negative real interest rates is what many are seeing and are seeking their protection in gold, as the yellow metal has been sound money for thousands of years.
The Krugerrand is considered the most traded gold coin in the world with over 60 million coins and a history going back half a century.