Degussa sees record gold sales, ups 2020 price forecast to above $1,700
(Kitco News) The summer gold rally, which saw prices surge more than $200, triggered record bullion sales at one European precious metals firm.
Sales of gold bars and coins were up nearly 190% during the summer months, Degussa said in a press release published on Thursday. Along with the sales data, the firm also reiterated its call for gold prices to be nearly $200 by the end of next year.
The most popular products were gold bars weighing one ounce and 100 grams as well as the South African coin Krugerrand.
These record sales could be just the start as Degussa chief economist Thorsten Polleit is projecting the $1,700 level for gold in only one year.
"The central banks ensure that the purchasing power of money continues to wane, which also drives up the prices of gold and silver. There is no end to this inflationary policy, and I would not be surprised if the price of gold surpassed $1,700 in around a year - and this price tag may not include any remaining crises," Polleit said in a press release.
On top of sales, Degussa stepped up its purchases as customers rushed to sell their gold bars, coins, and jewelry in order to take advantage of the summer rally. Degussa's purchase business was up just under 30% between June and August.
"We've seen that many investors took advantage of this move to take profits and turned their precious metal into cash. For example, Degussa saw a fivefold increase in its purchases compared to August 2018," said the firm's head of trading Oliver Heuschuch.