Milk, Bread … Gold Bar: Bullion Goes Retail - General * Europe * News * Story

MORE HEADLINES

Markets | Economy | Companies

- Next Week: Cash In Now Or Wait For A Santa Rally?

LATEST FROM OUR BLOGS

- Portfolio Prep for Next Week: 'Don't Get Crazy'

FEATURED SLIDESHOWS

Runway Angels
The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.
Smartphone Guide
Here's a need-to-know guide to nine devices, based on features, price, network and platform.
Wines for the Holidays
Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES

How Well Do You Know Your Bird?
Let's talk turkey. Test your turkey knowledge and perhaps pick up a bit of trivia to trot out at your holiday meal.
A Healthier & Wealthier You
Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.
The Billionaire BFF's
Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?

SPECIAL REPORTS

Winterizing Your Portfolio
If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.
Investor's Guide to Real Estate
Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.
Alternative Investing
Stocks and bonds? Sure. But it's a big world out there for investors.

CNBC ON DIGG

Milk, Bread … Gold Bar: Bullion Goes Retail

Published: Thursday, 15 Oct 2009 | 10:23 AM ET

Text Size

By: Robin Knight
CNBC Assistant Web Producer

Stuck for what to get your loved ones for Christmas? Well if you stop by London's glitzy Harrods store, you could get some gold bullion to put in the stocking.

Harrods

Harrods, which fills an entire block in the capital's upmarket Knightsbridge area, started selling gold bullion and coins over the counter for the first time Thursday. Strong demand from private investors has prompted the move, according to a Harrods spokesperson.

"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," Chris Hall, head of Harrods Gold Bullion, said in a statement. "Harrods saw the opportunity to help individuals buy physical gold in a prudent manner."

Many private investors have seen their wealth eroded by the financial crisis and have lost trust in more common assets classes like property and stocks.

"We offer at 'market-linked prices,' a full range of Swiss investment grade 999.9 fine gold bars that meet international 'good delivery' standards," Harrods said on its Web site.

As well as selling, Harrods is also offering to buy the gold back from its customers - subject to current market prices, of course.

RELATED LINKS

The price of gold [US@GC.1 Loading... () ] has surged over recent weeks to touch record highs above $1,070 per Troy ounce. Sharp declines in the dollar, coupled with underlying inflation fears, have driven investors to the precious metal.

Physical gold could seem to be the ultimate safe haven, but some analysts have warned that its price may be far from stable.

The recent surge in the price of gold could "collapse" and quickly move back toward the $1,000 mark as it has not confirmed its upward trend yet, Daryl Guppy, CEO of Guppytraders.com, told CNBC.

"There's a possibility that this rally is going to collapse relatively quickly and take us back and retest the $1,000-1,020 (per Troy ounce) level," Guppy said.

Harrods owner Mohamed Fayed teamed up with Swiss refiner Produits Artistiques Métaux Précieux (PAMP) to bring the gold to its customers.

"Harrods stock our full range and are now the only location in London where investors can purchase a 12.5kg gold bar 'off the shelf'," Mehdi Bakhordar, managing director of PAMP, said in the statement.