After the price of gold hit a new all-time high in April, gold trading companies Florinus and Paysera note that while some gold holders are rushing to sell out and lock in profits, others are waiting for further predicted appreciation of the precious metal and increasing investments in this asset class. In addition, there is a growing interest of investors in investment silver, which, as an additional investment tool, diversifies and complements the available investment portfolio. At the time, the price of gold, having come off the record highs of 9 April ($2,384.5/oz), rose again on Wednesday and reached $2,330/oz today.
“Florinus”, which operates four investment precious metals stores in Lithuania, has recorded an increased flow of visitors in recent months, driven by record prices for investment gold.
“The unexpected and surprising reduction of interest rates by the Fed, uncertainty in stock exchanges, still uncontrolled inflation, recessions in the largest economies, protracted geopolitical conflicts – wars in Ukraine and the Middle East – gave a huge boost to the global gold market and encouraged investors to turn to gold again”, – says Žilvinas Leškevičius, director of “Florinus”.
This is also shown by the increased sales of investment gold in Lithuania.
“If in March we bought precious metals for 539 thousand EUR, and we sold it for 2.3 million. EUR, that is, until April 24, even after gold exceeded all-time price records, we sold 2.5 million worth of precious metals. EUR, meanwhile we bought it for 351 thousand. “Increased sales of investment gold and decreased purchases show that investors are ready for a further “rally” in the price of gold, while alternative investments remain less attractive”, says Ž. Leškevičius, who adds that the demand for gold has recently been increased by China’s actions.
Ž. Leškevičius notes that the growing interest in gold automatically strengthens the silver market as well, since silver is also seen as a safe investment tool and is often compared to gold.
Some are selling, others are stockpiling or increasing
Active gold trading also took place among those who buy precious metals using technology. Paysera bought 460,000 from app users in March. EUR of gold, compared to 100 thousand. EUR volume in April.
Kostas Noreika, a member of Paysera’s board, says that gold holders took the opportunity to profit from the jump in the price of raw materials, but there are also those who expect a further rise in the price of gold – the company’s clients still hold about 5.12 million. Eur gold reserves.
“During inflation, people looked for ways to protect money from depreciation, and gold became one of the choices. Now, seeing those price records, gold holders have sold their stocks and taken profits. Meanwhile, others do not sell out, but on the contrary – expect appreciation and accumulate gold reserves”, says K. Noreika.
According to Paysera, in less than a month of April, buyers purchased gold for 153 thousand through the app. Eur. K. Noreika claims that the customer base is extremely differentiated.
“Buyer segmentation reflects the versatility of gold as an investment, its applicability to people of various demographics – from young technology enthusiasts who purchase gold via mobile applications to older people who prefer personal consultations in gold stores,” says K. Noreika.
There are assumptions for price growth
The price of an ounce of gold retreated from a record of $2,365 and rose by 2.4 percent on Wednesday (April 24) morning (Lithuanian time), according to Kitco.com. and reached $2,330/oz.
The manager of Florinus believes that the price at this level is still supported by the forecasts of the Fed’s further interest rate reduction in June or August this year, although experts predict that this probability reaches 20% and 50%, respectively.
“Currently, the European Central Bank (ECB) is waiting for a reduction in interest rates, which would add “sparkle” to gold in the eyes of investors and another big wave of rising gold prices,” says Ž. Leškevicius.
He points to investors’ and analysts’ predictions that the price of gold will end 2024 at $2,500/oz, and that the price of gold could reach $3,000/oz later in the year.
According to Paysera, 1g and 2.5g are the most purchased by customers. gold bars, which on Wednesday morning (April 24) cost EUR 88 and EUR 212, respectively. The most bought coins are the Krugerrand South Africa and the Austrian Philharmonic, which were priced at EUR 2,307 each on Wednesday morning.
About Paysera
in 2004 Founded in Vilnius, Paysera is a financial technology company that is the European e. offers stores more than 100 ways to accept customer payments for purchases. Paysera also provides account, transfers, currency exchange, gold trading and other services.
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Tags: Gold traders Lithuanians hurry record profits rising metal price rise
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