Gold And Silver To Recover In 2013- Reuters Precious Metals Poll

Thursday, April 25, 2013
By Paul Martin

Gold Core
GoldSeek.com
Thursday, 25 April 2013

Gold climbed $15.50 or 1.09% yesterday to $1,430.40/oz and silver finished up 1.00%.

Gold climbed to its highest in more than a week on Thursday, boosted by physical demand from store of wealth buyers globally and from central banks.

Russia, Kazakhstan and Turkey raised their gold reserves in March, IMF data showed. Central bank gold buying is expected to increase as they see value in diversifying into gold after the recent sell off.

Premiums for gold bars soared to multi-year highs in Asia after a spate of physical buying ran down supplies, with dealers in top consumer India expecting a surge in imports this month.

Dealers also noted an increase in buying interest in second-largest buyer China, keeping premiums in Hong Kong at their highest level since October 2011 at up to $3 an ounce to spot London prices.

There are growing supply issues and a range of gold and silver coins and bars are in short supply internationally and premiums are rising globally. Many smaller dealers have been cleared out of their bullion inventories.

Demand had risen after the confiscation of deposits in Cyprus but the significant $200 price drop on April 12th and 15th has emboldened store of wealth buyers who see gold, and silver, as great value at these prices.

Britain’s Royal Mint, established in the 13th century, sold more than three times more gold coins this month than a year earlier as prices declined and sales are more than 150% higher than last month.

There are reports that certain Swiss banks are also prohibiting clients taking delivery of their gold bullion and will now only settle in paper currency. This in conjunction with the massive drawdown in COMEX gold inventories is leading to concerns of a default in the gold market which is further increasing demand.

The Rest…HERE

Leave a Reply

Support Revolution Radio