Credit: roman- via Freepik
TORONTO, Ontario – Physical gold shortages around the globe have left bullion investors scrambling to add coins to their holdings. Gold dealers are struggling to stock the coins and bars, and even veteran gold buyers now find themselves in unfamiliar waters. As bullion dealers fill the void with lesser-known products, it’s harder to know which gold products offer the best return on investment.
Toronto-based bullion company Global Bullion Suppliers is helping investors find the right products during the shortage with free bullion consultations. With demand at record highs, they’re diversifying their inventories and guiding investors through new bullions products.
Gold Shortage Stretches Supply Thin
First-quarter demand for gold bullion has surged across the globe. The US Mint, which manufactures the popular American Gold Eagle, sold 412,000 ounces to start 2021, the mint’s largest sales pace since 1999. Sales are up even compared to a relatively strong 2020. Sales of bullion coins were up 258% across 2020.
The phenomenon is hardly limited to the United States. Australia’s Perth Mint, known for its one-ounce Kangaroo coins, saw demand 285% higher in the first quarter of 2021 compared to the quarterly average since 2012.
High demand has left bullion dealers struggling to keep gold and silver in stock, but the shortage starts with their own suppliers. Dealers secure the lion’s share of their products from sovereign mints and private refiners. They’ve faced their own struggles producing enough to keep up with demand. Even before surging demand changed the bullion landscape, the US Mint had limited distribution of some of its silver coins as it planned to change the design for its American Eagle coins.
Pandemic Fuels Demand
Pandemic fears over inflation are on the rise due to trillions of dollars in stimulus money being pumped into the economy. There are concerns that once economies around the world finally open up, all that new money will resuscitate inflation rates that have been largely dormant for the better part of the last decade.
Precious metals have been a traditional safe haven for investors looking for an answer to inflation fears. While gold’s short-term performance against inflation has not always lived up to its reputation, it’s widely regarded as a stable long-term asset that can balance out a portfolio.
Guidance for Bullion Investors
The new landscape has frustrated new and old investors alike. Buyers keen on balancing out their portfolios with a long-term inflation hedge aren’t willing to wait for supply shortages to sort themselves out. Instead, they’re turning to whatever products are available, such as silver coins.
The high-demand environment has pushed premiums higher, making it harder to find products with a good ROI. Global Bullion Suppliers’ consultations have become a valuable source of information for investors turning to less conventional gold and silver products.
The enduring appeal of gold and silver has buoyed demand throughout the pandemic. Despite the challenges, investors are still eager to bolster their positions. New investors can benefit from all the help they get in the new bullion landscape.
