The price of gold shot up above 370 dollars an ounce on the key London bullion market on Tuesday (18 September).
CU: Newspaper bill-board showing 'London Gold Rush'
SV: Jewish gold merchants in Hatton Garden.
SV: People looking in shop window at jewellery made of gold. (2 shots)
CU: Board displaying gold price
CU: Mr Leonard Gance placing ten Krugerrands on table, and handles two of them. (2 shots)
CU: Mr Gance, Gold dealer, speaking to Visnews reporter. (2 shots)
GANCE: "I find from my experience that the public is becoming more and more gold conscious in this country and whereas we need cash in our pockets to purchase the daily means of our existence and most people would not think of giving a gold Krukerrand to one's wife in lieu of her housekeeping money, yet at the same time many people feel that it is safer to invest their money in gold coins which is the nearest one can get to basic gold."
DARBY: "Krugerrands are very popular now, I see the Canadian government is starting to issue Maple Leaf gold coins. Will other governments follow the lead?"
GANCE: "Well it has been known for governments to follow the lead of other governments. Whether the Maple Leaf will be able to compete in popularity with the Krugerrand is a very big question-mark because the Krugerrands have had a very big head start. They were the first to produce gold coins of this type which has a basic content of one ounce of fine gold. the premium above the price of gold is roughly three percent at the moment so one has to have a great deal of faith in one's campaign to produce a coin that will compete with the Krugerrand in popularity."
REPORTER: JOHN DARBY
Script is copyright Reuters Limited. All rights reserved
Background: The price of gold shot up above 370 dollars an ounce on the key London bullion market on Tuesday (18 September). The price represented a rise of more than fifteen dollars on the previous day's closing rate. Dealers said the upsurge came in anticipation of a large gold auction by the United States Treasury later in the day. For two hours in the morning trading was so frantic it was virtually halted, with dealers finding it almost impossible to obtain a quote in the market. At one point the price reached more than 380 dollars an ounce before slipping back.
SYNOPSIS: The London gold rush involved many ??? buyers chasing a small volume of available gold. Dealers said there were few sellers on the market. But in the retail market at Hatton Garden there continued to be a wide variety of gold jewellery available, for a price. Dealers said the United States Treasury sale of 750,000 ounces where strong bidding was expected helped drive up the price. they also believed the rush for gold reflected lack of confidence in paper currencies weakened by inflation and recession.
London dealer Leonard Gance says the most popular form of gold for small investors is the South African Krugerrand, coins containing one ounce of fine gold.