01 October 2010
Buyer Caution Seems to Evaporate as Gold and Silver Bullion Keep Surging
Gold and Silver Bid to Win ratio surges to highest level in the Bullion Comparison Service history
Well what a difference a few weeks makes! Regular readers of our Blog here at BullionSupermarket.com will recall us lamenting the tedium of the Gold and Silver markets over the recent summer months. You can accuse the Bullion markets of many things, but one charge you couldn’t level right now is tedium. September 1st to October 1st has seen the PM London Gold fix, the measure by which we calculate our Gold Bullion premiums, rise from $1246.50 per troy ounce to $1316.25 per troy ounce, a rise of some 6% on the month, some 17% on the year.
On the same measure for Silver, September 1st to October 1st has seen prices rise from $19.47 to $21.95 an increase of 13%, a total of 28% rise on the year.
The $70 rise in the Gold price, and the $2.50 rise in Silver, this month seems to have galvanized many buyers into heavy buying activity in September. BullionSupermarket.com buyers are a savvy bunch, historically using our service to locate bargains in the market and buy at low premiums. This activity has been reflected by the ratio of bids placed on auctioned Bullion Items, by our precious metal buyers, to the items actually won. Historically our users have won 16% of items they have bid on. This month, as the Gold Price broke confidently above $1300 this ratio increased to over 28%, possibly indicating that BullionSupermarket.com buyers are abandoning caution to load up on Gold and Silver.
Fixed price Silver Premiums are currently marginally higher with fixed price 1 troy oz Silver bars on offer at 41.77% over todays fix, as silver premiums edge higher unusually in tandem with higher prices.
Additionally, Fixed price 1 troy oz Gold bar premiums again remain broadly unchanged for now, for sale at an average of 13.75%.