14 September 2011

Gold: All just a little bit of History repeating

Interest in physical gold and silver showed signs of recovery this week at BullionSupermarket.com, as gold seemed to feel happier just above the $1800 level.

Recent wild swings in the Gold price, has put off many retail buyers of Gold and Silver coins of late, with many opting to sit out the volatility before re-entering the market. We have seen wild swings of equity markets spill over into precious metals before, as investors caught out by margin calls on loosing share positions, are forced into sales of profitable Gold and Silver positions. Though up until recently we had not seen such volatility effect the physical coin and bar markets too much.

But now with gold seemingly having settled above the $1,800 mark, and with Eurozone debt crisis threatening to spectacularly erupt, buyers are showing signs of being tempted back by more stable prices and easing premiums. Both Gold and silver price comparisons and clickthroughs having jumped at Bullionsupermarket.com mid week.

Short term, precious metal prices look set to be determined by developments in Europe, most probably the outcome of Eurobond proposals, currently so implacably opposed by the Germans. The spectre of a Greek default, and it's knock on effects on European banks still looms large on the European horizon.


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