Golden days for Harrods
LUXURY department store Harrods has sold hundreds of thousands of pounds worth of gold bullion since it began offering coins and bars “off the shelf” a month ago.
The Knightsbridge retailer, owned by Mohamed al Fayed, said it had seen a steady flow of sales to high street shoppers but hinted it wanted to stimulate more interest from serious investors.
The news came as the spot price of gold slipped slightly to $1,100 (£659) an ounce, down from Monday’s record high of $1,111.
Harrods has been selling investment grade bars and coins including sovereigns, South African Krugerrands and American Eagles from its lower ground floor since mid-October.
Malcolm Maclean, general manager of Harrods Bank, said: “We’ve been getting a lot of people buying the smallest gold bar at the lowest value (just over £100), so they’re buying it as a present for someone. At the other end of the spectrum we’ve had interest from wealthy investors, but inevitably they’re going to shop around.”
Harrods sells a Krugerrand, thegold coin, at a premium of 11 per cent to spot price for orders below £5,000. Maclean said the store was “willing to talk on rates” for larger deals, an indication it is keen to entice savvier buyers. Krugerrands can be bought from specialist dealers at around five per cent premium.
Adrian Ash, head of research at online dealership Bullionvault.com, said some investors would be willing to pay a premium for the reliability of the Harrods name. “This is a sign of how far back gold has come into the mainstream,” he added.