The British upscale department store Harrods, will begin selling gold bars and coins over the counter today at the Harrods Bank branch on the lower ground floor of the West London store.
Harrods has partnered with Produits Artistiques Métaux Précieux (PAMP), a Swiss refiner, to sell gold at the store known for it's glitzy customers, reports the
Telegraph.
In an interview with the Telegraph, the head of Harrods Gold Bullion, Chris Hall said, "The financial environment has kindled a new demand for physical gold among private investors in Britain. For many people this is a new and unfamiliar asset class that demands absolute trust. Until now London has had no well-recognised name serving this market. Harrods saw the opportunity to help individuals buy physical gold in a prudent manner."
The move shows that Harrods’ main customer base may have been largely unaffected by the recession, but low interest rates and a less than desirable real estate market have left wealthy investors looking for alternative investments, says the Telegraph.
Mehdi Bakhordar, managing director of PAMP, said in an interview with the Telegraph, "Harrods stock our full range and are now the only location in London where investors can purchase a 12.5 kg gold bar 'off the shelf'."
The price of gold hit another record of $1072 an ounce yesterday due to the weak dollar, and
some analysts believe that it could go as high as anywhere between $2000 and $5000 per ounce.
Others aren't so sure.
Jeffrey Rhodes, CEO of INTL Commodities, said in an interview with
Commodity Online, that gold prices could fall quickly if "speculators head for the exit doors at the same time".
This is the first time that Harrods has ever sold gold bullion.
