The price of gold rose to a record high on Monday. It tempts many Dutch people to buy or sell the precious metal, several gold offices in our country notice. Investors are particularly interested, especially because gold is a safe haven in uncertain times.
“We indeed see that it is busier than a few months ago. Both buying and selling of gold is happening more often,” says Daan Schonagen, co-owner of Goudzaken. That company specializes in buying and selling coins and bars, a kind of coins.
Schonagen sees that it is mainly investors who are looking for something that retains its value. And gold has that property. Particularly in troubled times, for example due to the wars in Gaza and Ukraine and a slowing economy, many people hoard their money in gold. In addition, there are many Dutch people who still have gold at home and now want to sell it because the price is higher than ever.
Traders paid more than ever for a troy ounce (31.1 grams) on Monday morning: 2,135 dollars (1,971 euros). In recent months, the price has been almost continuously below $2,000, with a dip in October of just over $1,800.
Gold trading has been going well for some time
According to Schonagen, it has been busy for a long time. “The unrest started in 2020 with corona. In addition, many people no longer trust banks and governments. Gold then gives them something tangible, which also has a stable value.”
Dawson Gold has also been seeing a growth in the number of customers for some time. There they also point to the uncertainty in the world. “First of all there was corona and then the wars in Ukraine and the Middle East,” a spokesperson explains. “And then there is also unrest on the financial markets and the dollar is under pressure.”
The latter plays an important role in determining the gold price. For traders who pay in euros, for example, gold becomes cheaper due to the lower dollar rate, which further increases demand for the precious metal.
According to Schonagen, there is something else at play, namely the rising prices of energy and groceries, for example, and the poverty that this creates. “We sometimes hear harrowing stories. For example, there was a family that had a campsite whose income was disappointing. They had to sell gold to still have some income.”