Latest / Best of Business / Tony Coleman: New Zealand Gold Merchants spokesperson on the price of gold soaring higher than ever

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Tony Coleman: New Zealand Gold Merchants spokesperson on the price of gold soaring higher than ever · Best of Business

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  Speaker 2: Price of Gold, speaking of charging for this, certainly has
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  Speaker 2: been heading record highs this week, broken through the three
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  Speaker 2: thousand US dollar an ounce mark and is now up
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  Speaker 2: fifteen percent since the start of twenty twenty five. Tony
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  Speaker 2: Coleman from New Zealand Gold Merchants is on the line
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  Speaker 2: with us Tony. Good evening, Hi, Ryan, how are you
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  Speaker 2: very well? Thank you? What is attracting everyone to gold?
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  Speaker 2: Presumably it's everything else going a little bit belly up?
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  Speaker 3: Well, I think you're right. I think there are three
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  Speaker 3: main reasons, and it's Trump, Trump and Trump. I mean,
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  Speaker 3: we're talking about Trump Tariff's, We're talking about Trump being
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  Speaker 3: creating a recession and creating falling markets, and the geo
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  Speaker 3: political uncertainty that Trump is trying to affect. SPAT is
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  Speaker 3: not doing very well at the moment.
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  Speaker 2: What returns would you normally see, like fifteen percent in
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  Speaker 2: there since the start of twenty twenty five is obviously massive.
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  Speaker 2: It's up there with the increase in European share markets. Actually,
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  Speaker 2: funnily enough, another place they see is safe but what
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  Speaker 2: would you normally see in your typical year for gold.
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  Speaker 3: Well, gold's been accelerating in price over the last few
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  Speaker 3: years since COVID. Really we saw in kibi dollars approximately
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  Speaker 3: a fifty percent return on investment last year, and it's
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  Speaker 3: accelerated into from January three February, mainly because of the
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  Speaker 3: Trump effect. And I mean by that nobody really knows
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  Speaker 3: what markets are doing. The tariffs have made us purchases
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  Speaker 3: importers by a lot of gold in the comax market
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  Speaker 3: and stand for delivery. That means instead of taking a
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  Speaker 3: profit when a future expires, they're wanting the metal. This
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  Speaker 3: has caused a lot of upheable and we're now having
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  Speaker 3: to move gold from London to New York to satisfy
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  Speaker 3: that need. And that's about one point six one hundred
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  Speaker 3: and sixty metric tongues, which is about fifteen billion dollars
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  Speaker 3: just for the February contract, which is enormous.
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  Speaker 2: Do you when you say we have to move it
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  Speaker 2: from London to New York, do you mean physically.
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  Speaker 3: It's physically moved. So normally delivery would be five to
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  Speaker 3: ten days out of New York, and we're talking eight
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  Speaker 3: to twelve weeks now because they had to move physically
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  Speaker 3: gold from the Bank of England to Comax ah Row.
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  Speaker 2: Presumably need a bit of security for that.
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  Speaker 3: Yes, I'm not sure it's going on a domestic flight,
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  Speaker 3: but my guess is that these things are all moved
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  Speaker 3: in a highly secure manner, as all gold is typically
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  Speaker 3: around the world these days.
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  Speaker 2: How much do we invest in gold New Zealanders? Are
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  Speaker 2: we quite hot on it?
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  Speaker 3: Well, we're a small market. We anticipate that the gold
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  Speaker 3: market in New Zealand is approximately zero point five percentage
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  Speaker 3: point of total investment, so it is a relatively small market,
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  Speaker 3: though it is growing. We are seeing people that understand
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  Speaker 3: finance in the market a lot more than people that
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  Speaker 3: are just using savings accounts through banks and kiwisever in facts.
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  Speaker 3: To try and fix that, we've just launched our new
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  Speaker 3: product called gold sever which allows anyone to buy gold
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  Speaker 3: for as little as fifty dollars a month stored in
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  Speaker 3: physical metal for them. So we're hoping that these sorts
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  Speaker 3: of initiatives will change the market in time.
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  Speaker 2: Make it a bit more tangible for people too, probably
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  Speaker 2: as well. Tony appreciable.
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  Speaker 3: It's it's better than holding it in a currency that
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  Speaker 3: is the worst performing in the OECD.
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  Speaker 2: Last year Good Point Tony Coleman ends in Gold Merchants.
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