Investors in gold are demanding “unprecedented” amounts of bullion bars and coins and moving them into their own vaults as fears about the health of the global financial system deepen. Industry executives and bankers at the London Bullion Market Association annual meeting said the extent of the move into physical gold was unseen and driven by the very rich. There is an enormous pick-up in investment demand. I have never seen a market like this in my 33-year career,” said Jeremy Charles, chairman of the LBMA. “The gold refineries cannot produce enough bars.” The move comes as fears grow among investors over the losses at investments previously considered almost risk-free, such as money funds. Spot gold prices in London on Tuesday traded at about $900 an ounce, more than 25% above the level before Lehman Brothers’ collapse. Executives said gold refineries and government mints were working at full throttle but acknowledged they were suffering shortages, particularly on gold coins.
