Consequences for the gold market? Russian central bank stops buying gold

Corona pandemic feeds growing gold demand

Since the corona virus has spread more and more in the world and has claimed an increasing number of victims in numerous countries, nothing has been the way it was. Economies isolate themselves and their citizens, stock markets are highly volatile and central banks are also taking drastic measures to support companies and governments. No one should be surprised that a “safe haven” like gold is in great demand in uncertain times. But the pandemic is not leaving its mark on gold mines, mines and refineries either. Production is at a standstill in many places, gold that has already been mined and further processed is partly packed in boxes and is waiting for further transport – which to a large extent also came to a halt due to Corona.

 

Physical gold is less available

It is therefore not surprising that the yellow precious metal is currently difficult to get hold of in view of the high demand. Physical gold in the form of bars and coins in particular is in short supply. In this context, banks and online gold traders are forced to accept only a limited number of orders due to the increased order volume.