Gold, Silver & Platinum Hit as Investors Dash for cash
To those of you that have followed the Gold market for any length of time, todays action across the precious metals complex will look pretty familiar. Heavy falls in stock markets, triggered by Germanys decision to ban short selling of some shares and gilts, soon spilled over into the precious metals market as investors grabbed at cash to cover losses.
Precious metals dips like this have been shown to often follow stock indicies sell offs, and this pattern has been seen a number of times since Lehman Brothers failiure sent markets into a nose dive. Previously the precious metals market often rallied more enthusiastically than the equity markets that led the fall.
As for the physical market, BullionSupermarket.com saw premiums slightly elevated as a result of the time lag required for the market to adjust to underlying Gold and Silver values. Traffic in Gold and Silver comparisons was up slightly, with buyers appearing to stay on the sidelines awaiting the next move in the market.