Metals markets tarnished
As traders worldwide made a mad sprint for money this month, they seemingly bought something that they may, together with shares, bonds, foreign currency echange, and even treasured metals.
Whereas gold and silver typically see elevated curiosity when different property fall, the worldwide liquidation has despatched costs for the metals crashing as an alternative. Within the final two weeks, gold has tumbled a staggering $215 per ounce, buying and selling Friday close to $1490, a lack of over 12%.
In the meantime, silver, which is valued partially for its industrial functions, has misplaced over a 3rd of its worth since late February, buying and selling as little as $11.75 per ounce this week.
At the same time as massive traders dump their metals holdings, pushing the worth decrease, retail traders appear to be flocking to coin retailers, shopping for silver cash and bars at vital premium to the futures markets. In some situations, demand is so excessive that costs are close to $19 per ounce for small purchases, a markup of over 50%.
Walt and Alex Breitinger are commodity futures brokers in Valparaiso, Indiana, and the opinions listed below are solely the writers’. They are often reached at 800-411-3888 or www.indianafutures.com. This isn’t a solicitation of any order to purchase or promote any market.