28 February 2012

Physical Bullion Coin Demand Robust as Gold gains 1% and Silver gains 3%

Strong Physical Buying of Silver Underlines Rising Silver Prices

The strengthening Euro was held responsible for Precious Metal gains today. And as we all know, one currencies strength is another's weakness. The rising Euro, on the back of German approval of the latest bailout package for Greece, meant a falling Dollar, and Gold and Silver earnestly confirmed their inverse correlation to the US currency by rising 1% and 3% respectively.

Silver has put in a particularly good performance so far in 2012 and may lead some to wonder if it is likely to be cut down by margin hikes again as it was last year. It seems that physical buyers are taking a "Whatever will be, will be" attitude and retail investors in the white metal seem happy to add to their positions in the face of rising prices.

Strong demand for Silver Bullion Coinage in UK secondary markets has started to show signs of supply tightness with American Silver Eagles, Canadian Silver Maples, and Austrian Silver Philharmonics all showing declines in available bullion volumes in the last week or so. The equivalent chart for US Silver Volumes shows depressed supply for significantly longer.


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