US investors and bankers are facing “severe shortages” of gold bullion and coins due the increasing coronavirus pandemic, The Wall Street Journal reports.
“Dealers are sold out or closed for the duration. Credit Suisse Group AG, which has minted its own bars since 1856, told clients this week not to bother asking. In London, bankers are chartering private jets and trying to finagle military cargo planes to get their bullion to New York exchanges”, according to the newspaper.
The news outlet added that the Royal Canadian Mint had been “swamped with requests” to ramp up production of 100-ounce gold bars that could be delivered to New York City.
The developments come as the price of gold futures in the US jumped by about 9%, to about $ 1,620 per troy ounce on Thursday, reaching a seven-year high.
Michael Matousek, head trader at the investment management firm US Global Investors, was cited by CNBC as saying that “it’s an indication that things are slowing down dramatically”.
“The worse data you can get right now, the market should respond favourably, because that provides more ammunition for the Fed to be keep on stimulating", he pointed out.
According to Johns Hopkins University, more than 100,000 people across the US have already been infected with the novel coronavirus, with at least 1,500 deaths.
Washington DC and New York have been hit the hardest by the virus, with the death toll standing at 109 and 366, respectively.