Krugerrand Output Jumps to 25-Year High on European Debt Crisis

There are two types of gold: One is held in the hand, the other is a paper proxy with a promise to delivery gold.

Krugerrands, Viennas, Eagles, and other gold in hand sources, continue to report record demand and shortages. These are the symptoms of a controlled market in which price is not cleared by supply and demand.

The marketers of paper proxies and infinite promises continue to tout their products’ liquidity and convenience despite growing distinctions between the physical (black market) and paper markets. While the mainstream continues to label those keen enough to observe this distinction as fringe, "gold bugs", they won’t be able to marginalize this group for long. Labels matter little in the world of money, right is right.

Rand Refinery Ltd., the world’s largest gold-smelting facility, raised production of Krugerrand coins to a 25-year high as Europe’s sovereign-debt crisis boosted investor demand for bullion.

Source: businessweek.com