German dealers and banks are snapping up krugerrands, the most popular type of gold coin in the world.
That is according to Deborah Tomson, the Rand treasurer, who told the Financial Times (FT) that the refinery which usually sells 2,000 coins to each customer, is seeing orders placed for 15,000 to 30,000 coins at a time.
Speaking to the publication, she said: "We have some extraordinary sales to German customers."
Despite the fact that the coins make up a small part of the overall market, the FT notes that they are one of the clearest signs that investor sentiment is strong for gold.
This is because it is seen as a safe haven during a period of turmoil in economic markets all over the world, and particularly in the eurozone, which is currently witnessing a sovereign debt crisis in Greece.
While paper currencies devalue as more money is printed to plug public deficits, gold promises to retain its value and act as a hedge against inflation.
This is a trend that Marc Faber, author of the Doom, Gloom and Boom report, recently highlighted.
In a post on his blog, he explained that "the masses don't benefit" when money is printed, but stocks and precious metals can skyrocket.
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