Nervous French savers start gold rush
The gold merchants of Paris may trade from shops in the shadow of the historic stock exchange building, but their business is booming even as the share market collapses.
Nervous investors, who have seen house prices, equity markets and interest rates falling, are seeking shelter for their savings in what many see as the ultimate in safe investment options: gold.
"For us, business is pretty good," noted a smiling Serge Siauvaud, whose shop in Rue Vivienne is a stone's throw from the palace that once housed the Paris stock exchange, in streets still full of brokers' offices.
Siauvaud says his custom is up by 50 percent since the repercussions of the US credit crunch hit Europe, confirming that depositors are increasingly putting cash aside in the form of precious metal.
"People come because they don't like having all their eggs in the same basket," explained another trader, David Levy, who said his shop had seen "many, many customers" in recent days.
"They prefer gold to cash. If there's any problem, they can sell it anywhere in the world," he said.
The basic unit for gold investors in France is the Napoleon Franc, a 6.45 gramme (0.23 ounce) coin. Three months ago one Napoleon was worth 100 euros (140 dollars). This week they were changing hands for 150 euros apiece.
"It's a reliable investment, better than shares," said Pierre, a retired investor who had come to town to check out the latest rates in the shop windows lining the side streets around the Place de la Bourse.
Nevertheless, the increased interest is not yet a sign of panic, traders insist. "No-one's turning up with their life savings, but lots buy two or three Napoleons once they've been burned on the stock market," Siauvaud said.
Clients generally wander around the financial district checking out rates in shop windows before selecting a trader and buying a handful of Napoleons or 20 dollar gold pieces, Levy explained.
Investors are not just drawn to gold by its reputation as a safe investment in times of global turmoil, but because of the simplicity and anonymity of keeping wealth stashed away in the form of a sack of coins.
Purchases of less than 3,000 euros can be made in cash, Siauvaud said, keeping the paper trail to a minimum.
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