Coronavirus causes gold shortage in US

A shortage of gold bars and coins on the US market has arisen due to the coronavirus pandemic. It is reported by Deutsche Welle.

Gold shortages arose as a result of a collapse on exchanges. Dealers sold all stocks of gold, and some of them were temporarily closed. The large Swiss financial conglomerate Credit Suisse Group AG, which casts gold bullions, asked buyers to “not bother it with calls.”

Wall Street bankers turned to the Royal Canadian Mint for help, and it has recorded an unprecedented increase in demand for gold bullion.

Previously reported, the global crisis has officially come because of the coronavirus. The head of the IMF said that the global economy is already in a state of recession. She added that economic recovery is expected in 2021.

IMF Managing Director Kristalina Georgieva predicts the onset of a deeper recession than in 2009 due to the coronavirus pandemic. She stated this in her video address on March 27, following a meeting of representatives of the IMF governing body, the International Monetary and Financial Committee.

“We have revised the growth prospects for 2020 and 2021. Now it has become clear that we have entered a recession – the same bad or worse than in 2009,” the head of the IMF said.

According to her, the Fund is working on a project to restore economies in 2021. At the moment, it is important to localize the coronavirus and to prevent the transformation of liquidity problems into a solvency problem. The main concern of the IMF is the risk of a wave of bankruptcies and layoffs that can not only undermine recovery but also destroy the structure of society.

Courtesy: 112International