PARIS: Buying of gold touched a new peak in the European markets today [March 14]. The Paris gold market had to be extended past its normal closing time today because of what dealers described as a “state of panic” with only a few minutes to go before it was due to close for the day.

Dealers of both bullion and foreign exchange markets reported a complete collapse of confidence in paper money.

The pattern of sales in all markets showed the buyers were snatching up gold, silver and platinum in any sizes of ingots or coins. It was an indication that even the grocer on the corner was switching his savings into something he considered safer and more solid than paper money.

“Only firm action of the United States to reduce its foreign payments deficit can now restore public confidence,” one market observer commented. Other sources expected either a complex breakdown of the seven-nation Gold Pool or official curtailment of sales. London dealers were frantically attempting to calm the panic and were making buyers pay higher and higher prices for the metal.

On Tuesday the United States had to make 40,000,000 dollars worth of gold available to the Gold Pool which has its headquarters in London. This sum represents about 360 tons of gold. Yesterday alone, nearly 100 tons were sold on the London market.

Swiss banks have halted gold trading early this afternoon when they were unable to keep up with a flood of offers in Zurich for the precious metal. — Agency

Published in Dawn, March 15th, 2018