The number of gold transactions increased by no less than 17% in the first half of this year, reports the Gold Exchange Office based on its own transaction data. According to the company, it is not only private individuals who are fleeing to gold, pension funds are also seeking refuge there.
The Gold Exchange Bureau says pension funds see gold as an option to protect their assets from inflation and a weak dollar. “Gold remains popular as a stable factor in uncertain times,” concludes the trader, who says he has 140 branches in the Netherlands, Belgium and Germany.
Economic uncertainty
The upcoming uncertain economic period also plays a role. For example, there are concerns about a recession, the risk of energy shortages in the winter and still high inflation. Individuals and small investors therefore still prefer gold as a safe-haven asset.
The goldsmith company also points out that a considerable amount of money was exchanged at its offices in the first half of the year. The company reports a record 75% growth in foreign exchange transactions. “This indicates that the Dutch and Belgians are indeed returning to vacation, even to more distant destinations.”
It’s not just individuals and pension funds that are flying to gold. Even a country like China is seeing more and more opportunities in gold to hedge against economic uncertainty. That country previously increased its gold reserves to no less than 2,092 tonnes, more than 144 tonnes more than in November 2022.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
