Precious metals dealer Michael Bloomstein of Brighton said there are widespread inflation concerns because of falling interest rates, and global losses have exceeded expectations in the banking sector.
“It’s traditional for people to go into tangible assets like gold and silver as a hedge against record oil prices,” he said. “I feel like I’m back in the days of Nelson Bunker-Hunt,” referring to the American oil company executive who demanded physical delivery of his silver in the 1980s.
Mr Bloomstein has been buying more scrap in recent days and has noticed that it is of a higher value than it used to be. In addition to buying larger quantities of krugerrands and sovereigns, he has seen an increase in people getting rid of heavy pieces of modern gold jewellery that were probably purchased at a small percentage above the bullion price and are no longer particularly fashionable.
By Stephanie Harris
Gold reaches 27-year high
GOLD reached a 27-year high last Friday thanks to the weakness of the US dollar, fears that it will continue to drop, and soaring oil prices. Other factors may include the pending Diwali Festival in India when it is traditional for people to give gifts of gold.
