A truly stunning effect on the gold market was made by the shutdown of gold processing companies. Due to quarantine, many gold bullion enterprises have stopped their work and as a result, a shortage of physical gold has formed on the market. This event gave rise to rumors that physical gold bullions are no longer available, and that in the future only those customers who managed to order bars before the closure of the plants will receive their orders. Gold futures reacted instantly and the April gold futures premium jumped from $ 3 to $ 30 an ounce. At the time of writing, the difference between the spot and futures gold price is around $ 20.
Now everyone who wants to buy gold bars will have to wait until the enterprises resume operations.
The three largest manufacturers in the world are quarantined - Valcambi SA, Argor-Heraeus SA and a processing plant as part of the MKS PAMP group - located in Ticino, a Swiss canton bordering northern Italy.
In connection with the current lack of bullions, investors began to buy gold coins, even those that have special historical value. Gold antiques and gold jewelry are also in high demand. It is clear for any experienced investor that the price premium for such items is too high.
According to one of the directors of the gold processing company, who wished to remain anonymous, insanity is happening on the market and the reckless actions of small investors are likely to lead to losses, inefficient investments and disappointment for them.