Gold has climbed to a new record high above $1,249.20 an ounce amid concerns about the European debt crisis.
And many experts say more gains are on the way.
During the stock market’s plunge May 6, major gold player UBS said demand for gold coins and small bars hit the highest level since 2008 at its sales desks in Geneva and Zurich, the Financial Times reports.
"Coin demand is so intense that supply is struggling to match," Edel Tully, a UBS precious metals strategist, told the FT.
Investors are worried that Europe’s nearly $1 trillion financial rescue package will send inflation higher.
Much of the gold demand is coming from Germany, where the hyperinflation between World Wars I and II is permanently etched on the citizenry’s brains.
"The demand has been huge overseas. Most of it is ending up in Germany," Michael Kramer, president of Manfra, Tordella & Brookes, a large New York coin dealership, told the Financial Times.
The Austrian Mint has sold more Vienna Philharmonic coins in the past two weeks than it did in the entire first quarter. "We're producing around the clock," Kerry Tattersall, the mint's marketing director, told the FT.
Central banks can’t raise interest rates to control inflation because of the financial system’s fragility, Monica Fan, a currency specialist at State Street Global Advisors, told CNBC.
“(That’s) raising fears over inflation," she said. "With so much uncertainty out there, gold has become a de facto currency.”
© 2017 Newsmax Finance. All rights reserved.