The gold markets in the United States and Europe have witnessed during the past few weeks, an unprecedented wave of people selling their gold holdings, Amid fears of an abnormal rise in prices of the precious metal fueled by fears of an outbreak of the Coruna virus since the beginning of the year.
According to a report published by Bloomberg, the increase in sales of used gold is due to the rapid rise in the price of gold, which increased 8.4% from the beginning of this year until last Thursday, before declining again.
The agency said that concerns about the decline in gold prices have become real, as the price of the yellow metal fell to $ 1563 an ounce, after it had reached $ 1689.31 an ounce in New York on Monday, February 24, which is higher His level in about seven years.
The agency attributed this to investors resorting to selling gold to cover losses in other asset classes.
According to the agency, the decline recorded by gold prices on Friday may boost the gold selling fever instead of stopping it.
The Bloomberg report cited the opinions of some jewelry retailers that indicated that old gold sales often rise when gold prices increase, but nevertheless, there has never been a rise in this pattern.
They said that no one is now thinking about waiting in anticipation of a further rise in gold prices in the future, as what is happening is tantamount to an “escape to safety motivated by fear”; They added that people are trying to “sell anything they can sell”.
And gold lost at the end of the week (Friday) 4.6%, In the largest one-day drop in percent since mid-2013, With the terrifying investors of the Corona virus liquidating various assets, according to Reuters.
The losses also included palladium, which fell 13%, and platinum, which fell 6.1%, and silver, which fell 7.4%.
Usually, gold is considered a safe haven in the event of geopolitical or economic risks that drive investors to diversify their portfolios, and head towards the yellow metal although it does not achieve direct investment returns. safe shelter”.
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