Silver Investment Demand Surges 30% As Silver ETF Holdings Robust

 

Today’s AM fix was USD 1,577.00, EUR 1,049.10 and GBP 1,204.18 per ounce.
Yesterday’s AM fix was USD 1,580.50, EUR 1,213.25 and GBP 1,054.02 per ounce.

Silver is trading at $28.81/oz, €22.04/oz and £19.24/oz. Platinum is trading at $1,604.50/oz, palladium at $760.00/oz and rhodium at $1,200/oz.

Gold fell $5.70 or 0.36% closed at $1,577.70/oz. Silver slid $0.19 or 0.65% to $28.86. 

 
Gold and Silver ETF Holdings

Gold appears to be consolidating just below the $1,600/oz level. It is 0.3% higher in dollar terms for the week, 0.4% higher in pound terms and 2.3% higher against the yen which has fallen sharply this week. 

While it is 5% lower YTD in dollar and euro terms, it has risen nearly 2% and 4% in pound and yen terms so far in 2013. 


Cross Currency Table – (Bloomberg)

Physical demand continues to be supportive of gold according to UBS. In their note today they say that physical demand prospects out of China remain positive in the weeks ahead. UBS said Asia remains a net buyer and although premiums on the Shanghai Gold Exchange have fallen, volumes remain elevated.

Meanwhile Chinese banks are also buying gold in international markets.  The spread between Shanghai and spot gold prices narrowed from about $20 an ounce over the past few days to below $15. Reuters reported that there was "strong buying from Chinese banks" in the overseas market which had helped push up the premium in onshore prices.

Silver is outshining gold in the market for exchange-traded products as global demand for the white metal gets a boost from industrial consumption amid signs of an economic recovery, CPM Group Inc. said.

The Bloomberg Chart of the Day shows silver tonnage in exchange- traded funds backed by the metal rose for four straight months, while holdings for gold ETPs dropped in January and February. 

Silver futures may jump 20 percent this year to $34.50 an ounce from yesterday’s settlement of $28.808 in New York on investment demand and industrial use, said Rohit Savant, a senior commodity analyst at the New York-based research company.

“People have been buying silver both as a base and precious metal,” Savant said in a telephone interview with Bloomberg. “Economic demand will push prices higher.”


Gold GBP YTD – (Bloomberg)

About 53% of silver is used in industrial products from televisions to batteries, according to the Silver Institute in Washington. Some investors may buy the metal as a “cheaper alternative to gold”, and investment demand has climbed 30% this year, Societe Generale said in a report on March 4.

Holdings in silver ETPs rose 3.6 percent in the two months ended Feb. 28, reaching a record 19,699 metric tons on Jan. 18, data compiled by Bloomberg show. Last month, assets in gold ETPs fell 4.1%. 


Silver GBP YTD – (Bloomberg)

Sales of American Eagle silver coins by the U.S. Mint jumped to a record in January and more than doubled in February from a year earlier, the Mint’s website showed. China’s imports of the metal surged 14% in January, the biggest monthly gain since July.

Webinar: Everything you need to know about Silver in 60 minutes.

Date: 13th March, 2013, 1900 – 2000 GMT

Speakers: David Morgan publisher of the Morgan Report and GoldCore Research Director Mark O’Byrne

Do you want answers on why silver should be part of your investment portfolio and why silver is a form of saving and financial insurance? Do you want to know the safest way to own silver? Do you want the opportunity to put your own questions to two leading world authorities on silver? We’ll help you in this complimentary webinar, "Everything you need to know about Silver in 60 minutes."

To register click here!

NEWS  
Gold hovers near $1580/oz; US jobs data in focus – Reuters

Gold Swings Between Gains and Losses Before U.S. Employment Data – Bloomberg

ECB’s Draghi: Systemic Risk From Cyprus Not Necessarily Small – Deutsche Börse Group

Fed ‘stress test’: banks would lose $460 Billion if crisis struck again – The Telegraph

COMMENTARY
Why you shouldn’t be selling gold – Market Watch

EU "doomed to decline until the boil of monetary union is lanced" – The Telegraph

Why Precious Metal’s Run Isn’t Finished Just Yet – Market Watch

Exchange Traded Funds ‘Dumping Gold’ – Does It Matter? – Zero Hedge

Silver & Gold To Spike As Oil To Surge A Stunning 63% – 82% – King World News

For breaking news and commentary on financial markets and gold, follow us on Twitter.

 

Mark O'Byrne

Also on news-goldcore-com

Videos

What we can Learn from the International Gold Market

Jim Rogers Interview 2022

US CPI Data Release Update

Blog posts

Brace Yourself for the Impact

Fed’s message this week – higher rates, lower economic growth, higher unemployment. The Fed hiked interest rates by 75 basis points for the third straight meeting and the statement said that the committee anticipates further increases. The Summary of Economic Projections (SEP) showed that the median projection is for a further 1.25% increase by yearend. […]

READ MORE

What we can Learn from the International Gold Market

Today’s guest on GoldCore TV thinks it’s very likely that in the next ten years we will be moving onto a new gold standard. It is of course, not uncommon for gold market commentators to say something along these lines. But Jan Nieuwenhuijs is a gold analyst, who is bringing the chat around gold demand […]

READ MORE

Jim Rogers Interview 2022

We last spoke to Jim Rogers way back in January. He told us then that we were set to see the ‘worst bear market’ in his ‘lifetime’.  Since then, a lot has changed. Russia has invaded Ukraine, inflation has gone on a tear, Europe is facing a major energy crisis and the US has been […]

READ MORE

Featured

Rick Rule- Should You Invest In Gold 2022

READ MORE

Jim Rogers- The Worst Bear Market is Coming

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

What we can Learn from the International Gold Market

Jim Rogers Interview 2022

US CPI Data Release Update

Blog posts

Brace Yourself for the Impact

Fed’s message this week – higher rates, lower economic growth, higher unemployment. The Fed hiked interest rates by 75 basis points for the third straight meeting and the statement said that the committee anticipates further increases. The Summary of Economic Projections (SEP) showed that the median projection is for a further 1.25% increase by yearend. […]

READ MORE

What we can Learn from the International Gold Market

Today’s guest on GoldCore TV thinks it’s very likely that in the next ten years we will be moving onto a new gold standard. It is of course, not uncommon for gold market commentators to say something along these lines. But Jan Nieuwenhuijs is a gold analyst, who is bringing the chat around gold demand […]

READ MORE

Jim Rogers Interview 2022

We last spoke to Jim Rogers way back in January. He told us then that we were set to see the ‘worst bear market’ in his ‘lifetime’.  Since then, a lot has changed. Russia has invaded Ukraine, inflation has gone on a tear, Europe is facing a major energy crisis and the US has been […]

READ MORE

Featured

Rick Rule- Should You Invest In Gold 2022

READ MORE

Jim Rogers- The Worst Bear Market is Coming

READ MORE