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Home » Physical Gold Shortage Leads To Increase In Gold Prices

Given the current economic state, bullion suppliers including ours are currently experiencing a significant shortage of physical bullion supply.

High demand for physical gold causes supply constraints

The current shortage and high demand for physical bullion has led many suppliers to impose a market premium on gold prices.

Typically, suppliers charge a normal premium associated with the size of the gold bar provided to distributors. However, this recent market premium is the result of the difference between the price of gold (physical and paper) on the global spot market against the price of physical bullion on the real physical market.

HelloGold purchases its bullion from its supplier at the physical bullion price quoted by the supplier which, under normal circumstances, reflects the global spot market price.

During these turbulent times however, where the physical bullion price is disconnected from the global spot market, many gold sellers will now have to follow the physical bullion price.

What this means for HelloGold

Market premium surcharge

Due to this supply shortage of physical gold bars, a temporary market premium will be added and will vary in value for as long as the shortage of physical bullion creates a market premium over global spot.

    1. No changes in our fees

Both our BUY and SELL fees will remain at the base of 0.79% and 2% respectively.

    1. Fluctuating market premium prices

While HelloGold is doing our best to ensure we keep this savings platform as affordable as possible, we have to align our gold prices with those of our physical bullion supplier.

This means a temporary market premium (%) will be added on top of our base fees for both BUY and SELL transactions.

As stated, this market premium will vary in value over time to reflect the physical bullion prices set by our supplier for as long as there is a shortage of physical gold bars.

What is a market premium surcharge and why is it being added? Read more here.

Gold remains a safe haven

As you know, gold’s unique value is amplified during economic crises as many people start turning to gold as a safe-haven asset.

In fact, central banks in Asia and Eastern Europe have been buying and stockpiling gold in the last 3 years. Many market commentators believe that gold could play a major role in a new global monetary system in the future.

So if you’ve been diligently saving gold, you can be confident knowing you’re the owner of a physical asset that is increasing in value and will only continue to do so for years to come.

Protect your savings today.

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