The yellow metal is increasingly valued as a reserve asset, which will tend to push the price up, independently of all other factors. Due to new regulations, you may also have to bid in the future alongside financial institutions, including several banks, to acquire it.
The wholesale market gold price traded just above $1,700 an ounce during Wednesday morning in London, having risen back above that level in the earlier Asian session, though they remained near one-month lows.
The Hong Kong based Chinese Gold and Silver Exchange Society or CGSE announced recently that it will launch yuan-based silver spot trading in Hong Kong in the first part of next year. The exchange says growing demand for silver has prompted the decision.
Wholesale gold bullion prices rose to $1,725 an ounce Thursday morning, recovering some ground after yesterday's sharp drop during US trading, as stocks, commodities and the euro also gained and US Treasury bond prices fell.
Gold recovered somewhat overnight in Asia and again today in Europe despite the sharp selling seen on the Comex yesterday. As ever, it is very difficult to pinpoint exactly why gold and all precious metals fell in price.
While news that the euro zone had reached a deal on the next installment of aid for Greece initially pressured the US dollar and lifted gold and the euro a tad, its impact wore off relatively quickly and markets opened with a different tenor this morning.
Gold and silver have traded a bit lower on Friday and are both heading for a loss of 1% on the week in dollar terms. This is to be expected after the 3% and 5% returns of last week and the trading action this week has all the hallmarks of consolidation.
Even though the mining equity markets have been choppy and mostly sideways this year, the editor of The Daily Gold Premium newsletter, has managed to produce some enviable returns in his model portfolio.
Wary silver investors may be wise to watch out for a pre-election margin hike. Especially if silver’s price gets too frothy or starts dragging the price of gold up along with it, since such events could signal the reemergence of unpopular inflationary pressures.
Since the 2008 financial panic, central banks in the US, UK, Europe, and Japan have experimented with the aggressive use of their balance sheets to stabilize their financial markets and encourage a return to higher rates of economic activity.