Bank woes send business on to Paris gold changers
PARIS (Reuters) - A few steps away from the Paris stock exchange and its see-sawing share prices, gold changers have seen a sharp rise in the number of customers walking in the door in search of profits or just of a safe haven.
The narrow Rue Vivienne, just off the stock exchange square, houses a dozen gold changers who all say business has intensified since the global financial crisis started dominating the headlines, spooking investors big and small.
"It's almost doubled. Lots of people have lost faith in the financial system. Gold is a safe haven and over the long term, the price is going to rise," said Serge Siauvaud, busy behind the counter of his Saint Marc shop on the Rue Vivienne.
Among the customers, Philippe Dupont, 58, found comfort in the tangible yellow metal from the uncertainties of financial markets and their complicated instruments.
"Older generations like gold because it's concrete, you can hold it in your hand. It's reassuring at a time when it's obvious we're all going to suffer from the effects of the crisis," he said.
Interest in gold as a safe haven is not limited to the narrow streets of Paris. Prices of the metal climbed more than 1 percent on European markets on Wednesday as stock market losses prompted investors to turn to bullion.
Media in several countries have reported a surge in interest in gold from small investors, with one report from Britain saying gold coin and bar vendors in London had experienced queues for the first time.
Back on the Rue Vivienne, demand was high.
"We're seeing mostly buyers and the volumes they're looking for vary widely from small to large," said Corinne Monamy from the AVD Gold Team shop.
Imamou Abillahi, a 46-year-old employee of the Paris city hall, was showing interest in some 19th century gold coins.
"I have come with my personal savings. I don't want to leave my money in the bank, there's too many problems at the moment," he said, before putting 1,700 euros ($2,322) of savings into gold.
Coin experts were advising collectors to hang onto their gold coins rather than selling to make the most of recent price surges because they saw prices remaining on an upward trend.
But for some small collectors, the lure of a quick round of profit-taking was irresistible.
"I sold three gold coins. I got 506 euros for them. It's not a fortune but it'll pay for a week's holiday in Morocco," said Gerard Cornu, a young pensioner at 58, staving off the gloom.
(Writing by Estelle Shirbon)
