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Direct Bullion Comments on Gold Production Declining in 2020

Gold production declines in 2020 while investment demand increases

LONDON–(BUSINESS WIRE)–As a leading UK dealer in precious metals, Direct Bullion has been at the forefront of the jump in bar and coin demand, as investors have responded to the strength in gold prices.

As Direct Bullion also observe, according to Metals Focus, world output of gold in 2020 will drop by nearly five per cent, to around 3,368 tonnes [1] as the impact of COVID-19 is felt by gold miners across the globe. Nationwide lockdowns and social distancing restrictions have not only disrupted gold supply chains but have also limited workforces.

According to Metal Focus, although demand for gold jewellery is expected to fall by 33 per cent this year to 1,425 tonnes[1], this is not the case across all uses of the precious metal. According to data from the World Gold Council, demand for gold as an investment has surged by 190 per cent from 595 tonnes in H1 2019 to 1,131 tonnes in H1 2020 [2].

The jump in demand for gold as a safe haven, especially among institutional investors, which has been due to the COVID-19 pandemic, has driven the gold price to record high this year, in a range of key currencies, a trend which is set to continue into 2021.

Paul Withers, CEO of Direct Bullion says,

“2020 has seen people continue to buy gold coins with Direct Bullion seeing demand up by 120 per cent.

“Our customers continue to see gold as a safe haven for their investment capital. With the world facing a period of continuing political and economic uncertainty due to COVID-19, I believe people will continue to invest directly in bullion.

“According to Metals Focus, the average gold price in 2021 will be a record $2,000 per ounce [1]. If that is the average, then there will undoubtedly be times when gold trades at a higher price.”

Direct Bullion allows people to invest in gold for as little as £60 although the average purchase is in the region of £5,000-£10,000.

If you’re interested in investing in gold, head to our website at directbullion.com, or speak to one of our many in­house industry specialists on 0800 055 7050.

– ENDS –

[1] Metals Focus

[2] Gold supply and demand statistics, July 2020, World Gold Council; www.gold.org/goldhub/data/gold-supply-and-demand-statistics

For further information, please visit our website at www.directbullion.com

Notes to Editors

Direct Bullion is London’s leading bullion dealer. The Company gives its customers ultimate control of their wealth by enabling them to invest their money in tangible, durable, gold bullions or coins. Alongside selling and delivering gold bars and coins to its customers, Direct Bullion also offers safe storage at secure locations, as well as a guaranteed buy back service in case customer’s need to liquidate their assets.

Direct Bullion has also formed a strategic partnership with Aurus Gold to create digital tokenised gold, a sustainable global currency that can be used as an alternative to fiat currencies, or as the easiest way to invest in gold. The platform is completely decentralised through blockchain technology safeguarding user’s wealth against sovereign risk.

Contacts

Blytheweigh
Tim Blythe

Megan Ray

Madeleine Gordon-Foxwell

+44 (0) 207 138 3205  

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