Sunday, January 27, 2013

Chinese Citizens Are Now Buying Silver

Chinese citizens are “now buying silver because gold topped out in 2011 and silver is much more affordable,” said Thomas, a silver bull who has recently tripled his exposure to the white metal.

Silver is undervalued next to gold, has a finite and rapidly decreasing supply and it’s more accessible in greater quantities than gold, she said. All of these factors are “falling into place and becoming more acute, which therefore has driven up silver investment demand.” ...

“The increased demand for silver coins, as well as record holdings in silver-backed [exchanged-traded products], indicate that increasing numbers of people are looking to protect themselves with wealth-preserving assets,” said Skoyles.

Holdings in silver global ETPs stood at more than 600 million ounces as of Jan. 18, compared with just over 300 million in late 2008, according to data from ETF Securities.

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