Run on Gold and Silver continues at breakneck speed

 

The graph emphasises the sharp rise of Gold this week.

The increasing turmoil in Libya and the wider Middle East has been matched by upheaval in the commodities markets, as gold hit a new record high earlier this week.  As gold peaked at $1,444.40 a troy ounce, silver also jumped 3.2% to hit $36.70 a troy ounce.  This evidence merely underlines the fact that the run on precious metals is no short-term prospect.  Indeed, as one senior metals trader pointed out; “gold does perform a role as a currency”.  http://on.ft.com/igHsQz   As gold reasserts itself as a store of value, its effect as a powerful counterweight against weakened national currencies such as the dollar is apparent.         

The significance of this does not appear to have been lost upon the numismatic world.  In the Daily Telegraph of 8 March, gold Sovereigns and Krugerrands were recommended as a means to buy gold.  http://bit.ly/heHqxv   Following our blog posts of 4 March and 28 February reporting the possibility of rationing of silver coin sales by major mints due to heavy demand, CoinWeek has suggested that this potential ‘supply squeeze’ may continue.  http://bit.ly/i4BmDb


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