Gold has never been worth so much. Photo: Archive ANP
The high price of gold ensures a lively trade in the precious metal.
According to Goud Wisselkantoor, a buyer and seller of precious metals with a branch in Groningen, the high price motivates many private individuals and investors to take their profits. But more often they hope to invest their money safely by purchasing.
Gold exchange offices recorded 20 percent more transactions in the first quarter of 2022 compared to the last three months of last year.
old jewelry
Purchasing increased by 17 percent, partly because private individuals got rid of their old jewellery. Sales grew 29 percent, the company said. The decline in gold bars was a quarter higher.
Gold exchange office, which has more than 100 branches in the Netherlands, Belgium and Germany, states that the war in Ukraine has pushed the gold price to a record. Last Monday it exceeded 59,000 euros per kilo, the highest rate ever. On Friday, the price was 58,300 euros per kilo. According to Gold Exchange, the gold price always peaks in times of global crises. An investment in the precious metal is then seen as relatively safe.
Gold bars or coins
Owner Johan van Dijk of De Goudspecialist in Groningen, besides being a jeweler a well-known address for buying and selling gold, also notices the influence of the war. “People want bars or coins of gold,” he says.
This question has been given a new impulse after the invasion of Ukraine. However, he also notes that people have money left over due to the corona crisis and are happy to spend it, including in gold jewelry. Unlike Gold Exchange, he currently does not see an unusually large supply of gold or old jewelry.
‘People want to invest, spend and invest’
Van Dijk: ,,The purchase of gold always continues. When things go bad in the Netherlands, people more often want to sell their old jewelry. But right now it’s a bit less. We notice that things are going well in the Netherlands. People have work and earn well. They want to invest, spend and invest.”
According to him, it is noticeable that people have spent little money in the underlying corona years. Van Dijk: ,,We continued to sell throughout that period. But the people have not been abroad for two years. If you have not been on holiday twice, you have easily saved 10,000 euros on travel. They want something with that money. They’re releasing that now. There are also people who pay new gold with old gold. They can buy something nice for that.”
Engagement and wedding rings
According to the entrepreneur, the end of the corona crisis has also brought optimism. He infers this from, among other things, the sale of engagement and wedding rings. “We have never sold as many of those as recently. Today I got another six pairs that I need to engrave.”
Now that the gold price is peaking, the question is of course whether it will remain that high. In short: isn’t an investment also risky? Van Dijk:,, If I knew that I wouldn’t work here. But when I came to work here 32 years ago as a fifteen-year-old boy, a kilo of gold cost 6500 guilders, and now more than 58,000 euros. The price has never gone down. It has always been a good investment.”