The Coronavirus Takes Its Toll: Gold Prices Rise Day by Day

It appears that Hungarian investors reached the point this morning where they want to move their money into gold regardless of the price. The last straw was almost certainly the quarantine imposed in Northern Italy due to the spread of the coronavirus.

The coronavirus threat — now at our doorstep and potentially affecting us directly — has compounded the global risks already known to the market (military conflict in Iran, the approaching debt crisis, a significant weakening of the HUF, recession fears), all of which could cause a substantial slowdown in the global economy.

At the Conclude headquarters, the level of gold buying this morning has not been seen since the announcement of Brexit. Clients are primarily seeking to take possession of investment gold wafers and bars in exchange for cash or via immediate bank transfer. Activity on the Goldtresor precious metals trading platform is running at least three times its usual level.

The world market price of gold has risen by 4 to 5 percent compared with the newsletter we sent out last week, and we see no factor that would halt its uninterrupted advance.

Meanwhile, the number of confirmed cases in Italy is rising hour by hour, and the containment measures appear increasingly extreme with seemingly little effect. What is particularly alarming is that people are contracting the virus who have not been to China and have not even been in contact with anyone who has. This shows that we do not fully understand the transmission mechanism of the virus, as WHO spokesperson Margaret Harris has stated.