30 June 2011
Physical Gold Still Showing Signs of Scarcity in UK. Silver More Available
$1510 / £940 per ounce gold has plenty of takers in the UK as lack of physical metal limits investors options.
Lack of availability in small physical Gold bar and coin continues to be supportive of bullion prices and premiums in the physical Gold market in the UK. BullionSupermarket.com founder, Jon Hunt was quoted as saying on Thursday, "Nobody in the UK seems to be selling small gold right now. This shortage is illustrated by a woefully scarce number of auctions in UK Gold right now, and current news events are doing little to persuade Gold holders to release their metal onto the market. There is a real sense among smaller investors, that the dam may break any week now, and they are unwilling to relinquish what they see as protection. We are even seeing some of our users who would usually buy physical gold, pushed into Vault held products in the face of a shortage of physical."
Weakness in the British Currency against the Dollar and Euro, considered by some to be something of a mystery given Greece/Euro woes, has supported the price of metals in GBP terms in the face of recent price easing in other currencies.
On the bullion coin side, the ever popular and plentiful Gold Sovereign still showed plentiful availability as other 1 ounce and fractional Gold coins showed decent liquidity in the UK.
Conversely on the Silver bullion bar and coin market, auctions are much more plentiful in Silver bars and Coins, with many would be Gold buyers turning to Silver to fill precious metal demand.