Gold And Silver Bullion Coin And Bar Shortages Continue
Friday, 3 May 2013
Gold rose $8.10 or 0.56% yesterday to $1,466.80/oz and silver finished + 0.68%.
Physical demand for coins and bars internationally continues and is the strongest since the immediate aftermath of the Lehman Brothers collapse on September 15, 2008, and the consequent global financial crisis.
Government mints, refiners and bullion dealers internationally are reporting demand as high as in the aftermath of the Lehman crisis.
Brokerages are seeing nearly all buyers and little or no sellers which is making for a tight market with rising premiums. At GoldCore, sellers have been people liquidating unallocated positions and opting for taking physical possession or the increased safety of allocated accounts.
Higher prices will be needed by bullion owners in order to incentivise them to sell – prices that will likely be significantly higher.
Most physical owners are buying for the long term and will not sell in the coming months even when prices recover. If prices rise to back above $1,600/oz, some physical gold might come back into the market and alleviate the supply issues.