Gold fever as new gold stores open in Palma

New stores but nothing like the number fifteen years ago

Compro Oro gold store in Palma, Mallorca

Compro Oro, reckoned to be Palma's number-one gold store. | Miquel À. Cañellas

Andrew EdePalma15/03/2025 09:58

Over the past six months, six buy-and-sell gold stores have opened in Palma and a seventh is about to open. The National Police say that so many openings are unusual and are an indication of a new boom. The police take a particular interest in these stores, as they must comply with security measures (safes, cameras) and are subject to inspection by the robbery squad.

For Josep Palacios, founder of Compro Oro Plaza Progreso, describing these openings as being like gold fever is something of an exaggeration. He compares the current situation with that during the financial crisis. In 2009 and 2010 there were up to 120 gold shops, many of which soon closed. At present, there are around 50 in the whole of Palma, a number that is increasing but nothing like before.

His store is reckoned to be Palma's number one - over 60,000 buying and selling transactions in the past fifteen years. Since 2010, the store has purchased nearly one and a half tonnes of gold, paying some 55 million euros. Palacios explains that the price of gold is at an all-time high. It is this which is prompting the opening of new shops. "Gold is a great investment, but in the long term. I always say between eight and ten years."

Luis García Langa, Director of Markets at SDC Analistas, agrees with Palacios that the price of gold is motivating the opening of stores. "People find it attractive. The same thing happened up to 2010, but then many of the stores disappeared. This was because of the 46% drop in gold prices between September 2011 and January 2016."

So far in 2025, gold has risen in price 10.5% and has surpassed $3,000 an ounce, a new record price. García says it's difficult to know if this upward trend will continue. "But it's true that when a value is trending, it can continue to rise even if it is already expensive."

"The current increases are not the result of seeing it as a safe haven against the stock market, which is experiencing a spectacular upward trend; nor against inflation, which is falling; nor because of the increase in costs or real demand. The reason it has risen so much is because it is seen as a refuge from geopolitical instability."