Premium for Krugerrand gold coins has dropped significantly

Last Friday afternoon, investors had to pay an average of only around 4 percent surcharge on the gold price for a Krugerrand gold coin at an ounce in German precious metal trading.

 

Location a bit relaxed

The situation in the German precious metals trade seems to relax somewhat after the big rush before the turn of the year. At least the premium for most investment products has dropped significantly. Our current survey showed an average premium of 4.04 percent for Krugerrand gold coins at one ounce. Compared to the previous week, our mark-up on the current gold price when buying Krugerrand gold coins fell by almost 13 percent.

 

Krugerrand gold coins

Compared to December 23, 2019, there is even a decrease of 34 percent. Shortly before Christmas, the average premium for Krugerrand gold coins was still a high 6.16 percent. Compared to normal market phases, the relative price for the most popular gold pieces is still increased. A strong demand usually increases the premium and is often an indicator of a tight supply situation for precious metal products.

 

“Cheaper” is relative

The relative price for the popular 100-gram gold bars fell even more than last week, namely by 20 percent to 2.19 percent. If you compare the pure retail prices in retail, then Krugerrand ounces – which were available this afternoon for an average of 1,456.33 euros – were still 35 euros more expensive than on December 23, 2019. Despite the short-term price drop, the euro gold price was quoted recently 4.5 percent higher than just before Christmas. For silver investment products, there have been no such large fluctuations in the premium in recent weeks. Nevertheless, the popular silver coins Maple Leaf and Krugerrand (each one ounce) with a premium of around 25 percent each are also significantly more expensive in terms of surcharge than over most of the past year.