Michael Allan McCrae | April 26, 2013 Mining.com
This time around record gold and silver coin sales is investment driven, says James Anderson from GoldSilver.com.
"People see silver in the 20s and they think that is a great buy," says Anderson who is managing director of the bullion dealer.
It has been a wild past for weeks for spot gold and silver, with yellow metal holding $1539 on the down side and silver touching $26.68. The metals have seen a bounce back this morning.
The precious metals market remains jittery as the situation in Cyprus is coming into its final hours. Spot gold lost $12 to trade to $1604, while silver moved lower to $28.54.
Trouble in the Eurozone has reared its ugly head. Traders were sellers of the euro dollar as flight to gold was on the table as Cyprus is considering a tax on bank deposits to pay for a bailout.
Spot gold has rallied to begin the week amid Eurozone worries. The metal is testing the $1600 level as a break above could trigger buy stops.
The yellow metal hovered near $1599 as comments from a European Central Bank member saw fresh buying enter the market. ECB council member Bundesbank President Jens Weidmann said on Tuesday that eurozone debt crisis was not over and that the central bank would continue policies that promote growth and stability in the single currency bloc "as long as necessary."
The precious metals remained on pause as nonfarm payrolls took center stage with the release this morning. Payrolls increased by a whopping 236,000 jobs created in February and the unemployment rate dropping to 7.7% from 7.9%, dropping gold to $1561 intra-day. This has dented the sediment for the longevity of QE3.
It has been less than a stellar month for precious metals as spot gold has retraced to below $1600 and silver to $below $29.00. Gold's rally has been negated by longer-term investors, who have sold ETF holdings over the past sessions to free up cash to buy stocks as the Dow Jones Industrial average touches all time highs.
Published: Thursday, 14 Feb 2013 | 1:00 AM ET
By: Ansuya Harjani
Assistant Producer, CNBC Asia
Central banks scooped up more gold in 2012 than they have annually in nearly half a century as they sought to diversify reserves, the World Gold Council (WGC) said on Thursday.
Spot gold continues to struggle to hold onto gains as the metal trades near monthly lows of $1644. Liquidity remains very low while Asian traders are largely absent for lunar New Year holidays.
Spot gold is in a wait and see pattern as a number of key events take place. The G20 meeting in Moscow on Friday, as well as the "Sequestration". One of the main topics at the G20 meetings on Friday is countries trying to devalue their currencies.
"Fiscal and monetary policies must not be directed at devaluing currencies", the Group of Seven nations said on Tuesday
Metals traded sharply lower to begin the week as technical selling in a thinly traded market due to the Lunar New Year holiday in most of Asia.
with most of Asia out for Chinese New year the spot gold market was easily swayed to the downside. Spot gold drop t its lowest level of 1 month at $1644.
“Some dollar strength and concerns over weak Asian demand during the Chinese Lunar New Year celebrations have lent gold a negative bias,” said Standard Bank
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