Silver Premiums Gain on Increasing Retail Investor Demand - Interest in Gold Picks Up

During April 2011, auctions of BullionSupermarket.com branded benchmark 1 ounce Silver bars were attracting a 15.0% premium over the price of Silver. This has risen through May to 20.9%. June is currently achieving an average 37% premium. The site has also seen a sharp upturn in enquiries on bulk sales, even in the face of some price weakness this week.

Jon Hunt, BullionSupermarket.com founder, was quoted as saying "It would seem Silver premiums are indicating improving market sentiment among smaller investors. There was undoubtedly a element of buyers drawing their horns in after the big correction, but with Silver consolidating now, that retail interest looks to be returning".

Nightly news reports of Eurozone financial woes in Greece and elsewhere is doing little to convince the sceptical retail buyer that all will turn out well, and this is fuelling a demand for gold and silver coins and bars. And the US debt situation has not even begun to be addressed by policy makers, it could make the Eurozone situation look like a model of financial prudence.

The previous majority of activity on the price comparison service has been Silver price comparisons. But this has swung back to the majority of activity being gold comparisons this week. Completed transactions in Gold have also been higher with Canadian Maple and Chinese Pandas leading the way. Tightness of supply has continued to be a significant factor keeping premiums higher. This weekend in the UK, small gold bars for auction have been in particularly short supply, though a significant number of fixed price bullion lots accepting offers have been available.