17 September 2010

Small investors switch to cheaper Silver as Gold exceeds $1280

Record Gold prices show signs of driving coin and bar buyers to Silver

At time of writing, Gold has exceeded $1280 per troy ounce on the London market this morning. Silver is at around $20.85 per troy ounce.

This impressive performance over the last 2 weeks is in stark contrast to Gold and Silver price performance over the summer, and a welcome validation of faith for those Gold and Silver bulls that bought and held through July and August, in the face of “bubble has burst” talk from the some (albeit the usual) sections of the financial media.

However at BullionSupermarket.com there are signs that Golds soaring price has started to push buyers away from the yellow metal into its cheaper sister Silver.

Over the last month, there has been a clear shift in demand (the number of price comparisons performed) away from Gold into Silver. With typical gold / silver price comparisons split 75% Gold, 20% Silver, 5% Platinum. Price comparison activity now averages around 45% Gold, 45% Silver, 10% Platinum.

Fixed price Silver Premiums are currently lower with fixed price 1 troy oz Silver bars trading at 40.75% over fix, as silver premiums continue to decline on the back of higher prices.

Additionally, Fixed price 1 troy oz Gold bar premiums have remained broadly unchanged, changing hands at an average of 15.47%.


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