VIENNA, Dec 14 (Reuters) – The Austrian Mint, one of many world’s oldest and largest producers of gold bullion cash, is unable to maintain up with demand as folks rush to discover a secure haven for his or her cash amid surging inflation and financial fears attributable to struggle in Ukraine.
“Demand for gold has by no means been as excessive as this 12 months,” the Mint’s Chief Government Gerhard Starsich instructed Reuters in his ornate workplace in a Vienna constructing the place cash have been struck because the 1830s. Behind its quiet facade lies a warren of workshops the place fashionable machines soften metals and thump out cash.
“In the intervening time, each gold coin that comes off the coining press has already been bought,” mentioned Starsich. “Proper now we may promote 3 times as many as we’re in a position to produce.”
The Mint’s store, a contemporary nook of the constructing, has had an extended queue exterior day by day for months. Amongst these standing in line was pensioner Renate, one of many few keen to speak about her buying habits.
“I am from an older technology. Each time issues get a bit unsure we come again to gold cash and inform ourselves we’ll at all times have the ability to promote them,” she mentioned. “Gold has that security issue.”
Starsich mentioned clients had been of all ages and from all walks of life. Round a 3rd of the Mint’s gross sales are to international consumers.
The Mint was based in 1194 to strike cash from the silver paid as a ransom for Richard the Lionheart, after he had been seized and held captive by enemies close to Vienna.
Immediately, the Mint says its one-ounce Philharmonic gold coin, named after the world well-known Vienna Philharmonic Orchestra, is the top-selling gold bullion coin in Europe and Japan.
[1/7] Gold cash are seen within the manufacturing unit of the Austrian Mint in Vienna, Austria, December 13, 2022. REUTERS/Lisa Leutner
HOARDERS
Austria is a financially conservative nation during which the general public hoards money and gold in occasions of disaster. The Mint says demand for gold is the very best it has been because it took on its present type in 1989.
The Austrian Nationwide Financial institution, which owns the Mint, mentioned in a presentation on Austrian households’ funds in October that extra gold had been purchased within the two-and-a-half years because the coronavirus pandemic began than within the 5 years earlier than that.
It famous demand for gold within the first half of this 12 months was increased even than within the first half of 2020, “regardless of rising costs”, suggesting a rush to an asset seen as a secure haven.
“It is a cascade,” Starsich mentioned of the causes. “It began with the corona disaster, with the pandemic, when folks had been unsettled. Then in February Russia invaded Ukraine. That boosted gross sales once more. After which the rising inflation over the summer time/autumn, which elevated gross sales additional barely.”
This 12 months on the finish of November the Mint had bought greater than 1.8 million ounces of gold and was approaching the document of greater than 2 million set in 2009 after the worldwide monetary disaster. Gross sales in December are often robust as gold is a conventional Christmas present.
Starsich added that the push to gold was a world phenomenon seen at different main nationwide mints. The gold worth is presently round $1,800 an oz, in need of its peaks above $2,000 in March of this 12 months and August 2020.
He mentioned he believed extra Austrians had been looking for to incorporate gold of their portfolios as a hedge towards shares or to diversify their portfolios. Many analysts doubt the usefulness of gold to counter inflation, nonetheless.
Reporting by Francois Murphy
Enhancing by Alexandra Hudson
: .
