Wednesday, April 17, 2013

Paper Gold Silver Price Down but Physical Gold Silver Demand Up

Although the price of Gold and silver is down in the recently correction, the demand for physical gold and silver is up everywhere, even in Singapore.  Experience precious metal investors will know that this is due to the discrepancy between the paper gold silver market and the physical gold and silver market.  There are actually 2 separate markets going on.  The current smack down in the paper price is causing a surge in demand for the physical metals.

Look at silverbullion.com.sg website, all the coins have been snapped up.


So I had to look for another dealer - silverag.com.sg to find silver coins.  When I got there, the seller Dennis told me that all the Monster boxes have been snapped up.


Then I read in a reuter's report that says, "People are actually buying everything, gold bars, gold coins. People are rushing to get a hand on it. We have a problem meeting the demand because we are unable to get new supply," said Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore. "There's a huge backlog. It's the same for silver. So far sentiment seems to be improving. Even the price has more or less stabilised."

Friends, we should not be confused and discouraged.  There are 2 different gold/silver markets functioning here.  The paper gold silver market is not reflecting the true market price of the metals because it is a speculative market.  One day the real physical market will prevail when people lose confidence of the financial system in view of all the QEs that are going on the Japan, US and Europe.   

This is one of the best opportunity to stack up more.   People like Jim Rickards, Jim Rogers, Marc Faber, Bill Gross (bond king) Peter Schiff, Eric Sprott, James Grant, James Turk are still bullish about gold and silver.

Finally check out this recent related blog - The Real Price of Gold is More than the Gold Price

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