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.