Gold Price Surge and Edelmetall Trade: What’s Driving the Market?
The gold price has experienced a notable increase, rising by three percent within a week. Simultaneously, premiums and spreads in the precious metals trade are decreasing, despite ongoing long delivery times. This complex interplay of factors is creating a dynamic environment for investors and traders alike.
Gold and Silver Price Performance
As of Friday afternoon at 2 PM European time, the spot price of gold reached $5,188 USD, equivalent to €4,396 EUR. This represents a significant weekly gain of 3 percent. Silver has seen even more substantial growth, increasing by 11 percent to $89.82 USD (€76.10 EUR). These price movements suggest continued strong demand for precious metals.
Challenges in the German Precious Metals Trade
The German precious metals trade continues to face exceptional circumstances. According to Bars Özdemir, Head of Trade at SOLIT Management GmbH (GoldSilberShop.de), mints and refineries remain heavily burdened. Delivery times for some products can reach up to two months. Existing delivery dates are also subject to revision, impacting planning and tying up liquidity. Certain bars and coins remain out of stock, affecting sales.
Decreasing Premiums and Spreads
Despite the logistical challenges, the situation appears to be easing slightly. Data analysis reveals a decrease in premiums and spreads compared to February 20th, 2026:
- Krugerrand (new): Average €4,551 (+€102), premium down to 3.53 percent from 4.16 percent. Older vintages are sometimes up to €100 cheaper.
- 100-g Gold Barren: Average €14,491 (+€554), premium decreased to 2.52 percent from 2.77 percent.
The spread between buying and selling prices has also narrowed. The gap for gold bars is now 5.4 percent, and for Krugerrand coins, it’s 6.2 percent.
Silver Trade: Premiums and Spreads Also Decreasing
The silver trade is also experiencing reduced premiums and spreads, although they remain at high levels:
- Maple Leaf (new): Average €100.51 (+€4.97), premium decreased to 37 percent (previous week: 45 percent). Older vintages are up to €15 cheaper.
- 1-kg Silver Barren: Average €3,327 (+€154), premium 36 percent down from 44 percent.
Ankaufgeschäft (Buy-Back Business) Slowing Down
The buy-back business has noticeably eased in recent weeks. A previous backlog of nearly 1,500 buy-back positions, representing over 800 shipments, has been significantly reduced to around one-third of its peak. The ratio of sales to buy-backs has normalized, moving closer to one-to-one after years of a four-to-one ratio, indicating profit-taking by investors.
Hedging and Risk Management
Traders are actively managing risk in response to high price volatility, reducing open positions and increasing hedging frequency. This involves more active hedging, shorter reaction times, and tighter inventory control to capitalize on market opportunities without unnecessarily expanding entrepreneurial risks.
FAQ
Q: What is driving the recent increase in gold prices?
A: Strong demand for precious metals, coupled with broader economic uncertainties, is contributing to the price increase.
Q: Why are delivery times for precious metals still long?
A: Mints and refineries are experiencing high demand and operational constraints, leading to extended delivery times.
Q: What are premiums and spreads, and why are they important?
A: Premiums are the amount added to the spot price, while spreads are the difference between buying and selling prices. Lower premiums and spreads indicate a more efficient market.
Q: Is now a good time to buy gold?
A: Investment decisions depend on individual circumstances and risk tolerance. Consulting a financial advisor is recommended.
What are your thoughts on the current gold market? Share your insights in the comments below!
