Author: Lawrence Williams
Posted: Monday , 22 Apr 2013
LONDON (MINEWEB) -
The huge dumping of paper gold and the subsequent sales out of the big GLD gold ETF of last week do seem to have generated remarkable buying momentum for both gold and silver, with prices recovering from their nadirs of around $1350 for gold and $22.70 for silver.
There had been some decent recovery by the end of last week, but markets surged again when they opened in Asia this morning and there has been some strength too as markets opened in Europe, with gold hitting $1425 and silver $23.50 – gains of 5.5% and 3.5% respectively meaning potentially quick gains for those who came in at the lowest prices – at least in theory, but premiums due to the apparently enormous demand for physical metal, will have mitigated gains.
Interestingly, on premiums, Ed Steer pointed out in a recent newsletter, with a supporting chart, that the wholesale premiums bid by U.S. dealers for 90% U.S. silver coinage have started to spike in a manner last seen in 2008, which preceded a bug boom in silver prices from a very low level ...