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15 March 2011

Gold, Silver and Platinum all Suffer as Global Equities Are Slammed by Japanese Quake Consequences

Global equity markets spark dash for cash in Precious metals markets as global supply chains are seen threatened by Japanese quake and nuclear crisis

Equity markets in Europe have fallen sharply amid fears that Japan's earthquake and nuclear crisis will undermine manufacturers supply chains. The Nikkei 225 dropped 10.6% on Tuesday having been down as much as 14% at one point. This was the Japanese bourses biggest two day fall in 40 years. In European trading the German Dax index dropped as much as 5% mid morning before recovering slightly. In London the FTSE was down around 2.5% perhaps reflecting the lighter weighting of manufacturing within the UK market.

In the face of this market turmoil, precious metals appeared to revert to type, with investors selling down in a "dash for cash". Bullion bulls will have noted that during previous equity market falls sparking precious metals selling, bullion has quickly recovered.

Platinum and Palladium have been hit particularly hard due to expected reduced industrial demand for the PGMs.

At, Fixed price Gold Premiums have been pushed higher on the falling gold price, 1 troy oz Gold bars on offer at 20.11% premium.

Premiums were significantly lower, even discounted on the gold price, on auction lots ending soon as end of auction bidders held back while the market finds its feet again.

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