This week was negative for silver prices as the second most popular precious metal suffered the worst weekly performance in more than three years. What is worse, the week started with great expectations as gold was holding its upward trend, and silver had no reason to be left behind.
By closely examining the March gold and silver price charts we can safely draw the conclusion that silver was traded for gold at some time during and after the Ukraine crisis, and this is not the first time we are witnessing a similar situation.
The fact remains that the silver market is dropping closer to its six-month low levels and technical support levels seem to be of little significance. Technically it was difficult to foresee that the $20 an ounce threshold would recede as it was a very strong support level. In fact the spot price momentarily tested the $19.5 per ounce mark within Thursday’s trading session.
Although it really doesn’t help market psychology to see such prices for silver, there is a very significant indicator that has changed in favour of silver and that is the gold/silver ratio that is down from 67 to 65, and since gold still retains its upward trend and seems to have completed its price correction, it is difficult to expect silver prices dropping any further.
In the meantime Crimea is still the centre of attention around the world as the US and EU are discussing “deeper sanctions” against Russia if there are “further incursions into Ukraine”. US President Barack Obama admitted that energy is obviously a central focus of Europe’s concern, acknowledging that such measures will have some impact on the global economy. If this scenario realizes, the gold and silver markets will definitely see better days.
Silver coins indifferent of silver prices
At the same time low silver prices have boosted silver bullion coin sales, and most popular issues sold out very early last year. Investors spent significantly more on coins than on bars and this seems to be the case this year as well.
Indicative of the public’s interest for quality silver coins is that the Royal Mint issued the exclusive St George and the Dragon 2013 UK £20 fine silver coin limited to 10 pieces per billing household solely inside the UK. The coin is practically a silver sovereign, although this name cannot be used, as gold has been for centuries the precious metal preferred for issuing official royal coinage.
With prices for most 1 oz. silver bullion coins ranging from £ 16-20 it is honestly difficult to find a more affordable choice as for the price of a T-shirt or a family snack at McDonald’s you can purchase a magnificent piece of Art struck on one ounce of precious metal.
Coininvestdirect.com offers you a great selection of silver bullion coins, amongst them true landmarks of UK coinage such as the 2014 1oz Silver 2 Pounds Britannia. More than formidable gifts that will be largely appreciated, these coins serve investment purposes and also carry significant collectible value thanks to their unique quality of manufacturing and superb design.