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Napoleon, collateral victim of the Covid-19 pandemic

2020-03-24T18:42:51.573Z


For the first time since 1948, CPoR Devises was forced to suspend trading of the 20-franc gold coin until further notice.


While in this highly anxiety-provoking period, the French are rushing into safe investments, it has become impossible to buy certain gold coins. At the end of last week, CPoR Devises was forced to suspend trading of the Napoleon, the 20-franc gold coin, until further notice. A first since 1948, when the gold market opened! The last price was set at 274.20 euros for the coin which contains 5.8 grams of fine gold. In question? A major supply problem.

Read also: Gold, ultimate refuge value, is at its highest for six years

"We are having difficulties in supplying wrasse which prevent us from serving the high demand from individuals ," explains François de Lassus, consultant at CPoR Devises, the private credit institution which ensures the liquidity of physical gold in France. "We can hope to get supplies from a few central banks and wholesalers, but the main problem today is that individuals, who represent the main part of this market, keep their napoleons."

Read also: Gold, the ultimate refuge from coronavirus

A usual behavior in troubled times, gold being considered as a safe haven. But the shortage of coins is exacerbated by the closure of shops specializing in the sale of gold even if they have little inventory. "If the rating of Napoleon had been maintained, the premium for the coin, today 5%, would have exploded," adds the expert. The premium corresponds to the difference between the price of the coin and that of the fine gold it contains and it changes according to supply and demand. It will surely have to wait until the end of the crisis before you can garnish your woolen bottom with napoleons.

Source: lefigaro

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