Gold News

Gold buying is 'going nuts' as supplies dwindle

The head of bullion trading at the New Zealand Mint claimed on Saturday (January 10th) that people all over the country are rushing to buy gold, the NZ Herald News reports.

Gold prices nearly doubled in just over two years in recent times, rising from $550 per ounce at the start of 2006 to the record high of $1,030 per ounce in March last year.

The yellow metal is currently trading at around $825 per ounce, but Michael O'Kane explained that global demand has increased by 300 percent since the start of the credit crunch, as reported by the World Gold Council.

He told the news provider: "Two years ago, I took two weeks off during January trading. This year, I have had Christmas and New Year's Day off - it's nuts, and has been since Bear Stearns went sideways."

The level of interest has been so strong that the Royal Canadian Mint, the South African Mint, the US Mint and the Perth Mint have all been forced to suspend production recently.

In addition to the increased demand, Mark Pervan, head of commodities research at ANZ, has noted that supplies of the precious metal have taken a battering.

"Supply is incredibly tight. Consumers just can't get the gold - there's just no physical material for them to buy," he told the news provider.

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