Sydney bullion trader slammed with gold buyers
Australians are trying to profit from an “unprecedented” rise in gold prices as a long queue formed outside a popular gold dealer in Sydney on Tuesday.
More than 50 people stood patiently along the pavement waiting to enter Australian Bullion Company (ABC Bullion), one of Australia’s leading precious metals and gold bullion specialists, at Martin Place in Sydney.
Why this rush? Currently, gold stands at $US4369 ($A6517) per ounce, up about $US1794 ($A2676) from a year ago.
High prices are supported by the US government shutdown in Washington, D.C., the revolving door of France’s political leadership and disunity in Japan’s long-ruling Liberal Democratic Party.
The precious metal could reach US$4500 ($6714) per ounce by mid-2026, the Commonwealth Bank said.
In fact, market analysts said gold’s 70 percent annual rise was “unprecedented” as the precious metal defied all historical patterns.
IG market analyst Tony Sycamore told NewsWire that the run into safe-haven assets is unprecedented.
“Damn, it’s up 71 percent (over the year), why?” he said.
Mr Sycamore described gold’s rising prices as “crazy” given its situation during the global financial crisis, tech crash and Covid lockdowns.
During each of these periods, gold prices never appreciated more than 30 percent per year.
“What are we afraid of? The GFC, we haven’t seen anything like that, we haven’t seen anything like the Covid crash,” Mr Sycamore said.
Gold is an asset and generally increases in value over time.
