The golden pound is “galloping” – How much is it selling for today?

The golden pound breaks one record after another, the price of which exceeded 600 euros!

According to analysts, behind the rise of the golden pound is the great uncertainty in the global economy, with geopolitical tensions sending many investors to the traditional safe haven of gold.

The escalation of tension in the Middle East, following the Iranian attack on Israel, has resulted in prices of the precious metal reaching near historic highs. Analysts estimate that the price of gold may reach the milestone of 3,000 dollars per ounce in the coming months.

According to the Bank of Greece’s daily price report, the selling value of the old British pound rose to a 16-year high today at 613.42 euros. And at 509.17 euros the purchase price, which the central bank of the country itself offers to those who proceed with liquidations.

At the beginning of April, the purchase price of the golden pound was found at 580 euros, while in December 2023 private individuals received from the Bank of Greece (BoG) 431.38 euros per piece and bought from it at 519.80 euros.

The buying and selling

The new figures for the buying and selling of gold pounds in the first quarter of 2024 are expected to be published by the BoE in the near future, with the market discounting increased mobility on the part of sellers and reduced mobility on the part of buyers.

However, in the fourth quarter of 2023, individuals bought just 2,336 gilts from the central bank, despite gold’s consecutive record highs, while they sold 10,046 gilts to the Central Bank. In the whole of 2023, the sales of gold pounds from TtE to individuals reached 10,798 and the purchases of TtE from individuals reached 39,435 gold pounds.

Based on data from the Bank of Greece, since 2002 more than 3 million British pounds have been liquidated by Greeks, while purchases of approximately 1.5 million pounds have been made.

It is recalled that the most gold pounds sold by the Bank of Greece was in 2011 (78,462 pieces in 9 months), that is, as soon as the economic crisis had broken out in the country, while in the same period the highest liquidations were also recorded (94,256 pieces in the same period).

Gold has always been a “safe haven” in times of great turmoil.

Citi forecasts gold at $3,000 an ounce in the next 6 to 18 months.

Demand for the safe asset rose amid escalating tensions in the Middle East after Iran fired more than 300 drones and missiles at Israel, most of which were intercepted by Israel’s Iron Dome air defense system.

Gold prices hit another record high on Monday, with the most active June gold futures contract trading 0.37% higher at $2,383 an ounce and some saying there is more room to run.

It is noted that gold prices usually have an inverse relationship with interest rates. As interest rates fall, gold becomes more attractive compared to fixed income assets such as bonds, which would yield lower returns.