Rising gold prices send clients on a buying spree

Greece’s Piraeus Bank, the only domestic bank selling gold to retail clients, in the first week of December alone sold 10 kg of gold in gold bullion and 300 British gold pounds, quantities that used to be registered in one month. The total value of sales stands at almost half a million euros.

Gold has this week hit new all-time highs against the NBR exchange rate, climbing to 147 RON per gram, up 40% from the start of the year.
Though traditionally the alternative of investments in gold is seen as a safety net meant to protect against inflation, 2010 is the second year in a row when the precious metal is offering hard-to-match yields to investors, amid an economic environment with modest price increases.
“Clients’ interest in putting available cash in this asset has been steady during the entire year, with average monthly sales of 450,000 euros. Nevertheless, there have been stepped up investments in gold as a portfolio diversification way and as a safe haven especially in times of economic uncertainty, directly correlated to rising prices,” says Alina Piciorea, head of the corporate and retail sales at Piraeus Bank Treasury.