The gold market has been experiencing a severe crisis over the past few weeks. In the articles we shared on the subject, we mentioned that the gold refineries were closed, the gold shipments were disrupted, and the supply was insufficient while the demand was increasing. But some companies managed to turn this crisis into an opportunity.
They Fit One Year To Three Weeks
A citizen named Nigel Doolin recently opened a jewelry store called Core Bullion in Ireland. While opening this shop, he explored his potential customers, the global markets, the future of gold and many other things. As a result of all these researches, Doolin created a business model and prepared the shop’s annual plan. But these plans he made turned upside down.
His plans were upset but this was in favor of Doolin. Because Doolin achieved a much greater success than expected, in a much shorter time than he expected. When opening this shop, Doolin aimed to sell 25 kilograms of gold annually. But he sold 25kg of gold in just three weeks, thereby achieving his annual goal in three weeks.
Speaking to Independent, Doolin said that the demand for gold has increased rapidly and said about his shop:
“We have achieved much greater success than we expected. It has been three weeks since we opened the shop, but we have completed more than 70% of our annual target. ”
Demand is Increasing
People started to demand more gold than usual because of coronavirus. We have already said this for weeks, and we see its effects in the markets.
Especially as a result of the decisions taken by the Swiss Government, some gold refineries in the country decided to stop the activities. The crisis in the gold market was largely due to this. However, it seems that the refineries in Switzerland are slowly starting to recover.
According to the Reuters report, a refinery called Argor-Heraeus in Switzerland is expected to start operations again from April 6. This refinery, which has been closed for two weeks, will not work as intensely as before, but at least it will not remain closed.
We can see that the effects of the crisis in the gold market have eased as the gold refineries start to open slowly. However, if the coronavirus cannot be brought under control for a while, the demand may increase, in such a case the crisis in the gold market may be exacerbated.