Silver Britannia coins carry a face value of £2 and weigh one ounce in weight. Boasting a beautiful design of the standing Britannia figure, these coins are high in demand – mainly because they are produced by the Royal mint and it has not been overproduced. You can buy Britannia silver coins from coininvest.com for great prices a little over £20.
Silver coins like the Britannia do not carry tax liabilities on your investment, and in addition if you are buying in bulk you may be able to get a discount. And it looks like a good time to buy! Today, trade chatter is about the strengthening USD in response to positive employment data and for now 98% of silver traders are buying on the drop in silver price.
However traders are still expecting silver to drop lower before making a recovery, although they don’t expect a huge drop and actually have no way of knowing when prices will pick up. Even if silver price fall lower, they will inevitably pick up in the not too distant future bringing their trades back into profit.
If traders were foreseeing any significant reductions, there would be more sell positions. From this point the next ‘high importance’ economic data is due to be released tomorrow morning, and this data is ‘GBP consumer price index’ and ‘GBP core consumer price index’ which measures the change in prices for retail goods and services, including food and fuel.
The CPI is the key measure of inflation for the UK and is used by the Bank of England in making interest rate decisions. The report tracks changes in the price of goods and services that a typical British household might purchase. The figures released will help determine the direction of inflation, then analysts and investors alike will be able to make predictions about the Bank of England’s next steps and the possible market response.
For now all the markers are pointing towards buying, although we perhaps should consider why silver spot price is dropping while demand continues to be insatiable. Simple reason is that supply has not yet been outstripped.
Minted silver demand outstripping supply
Well these points relate to spot silver, however minted silver is a different story. Demand has outstripped the speed at which minters can supply, prices have been kept high and delivery times have been delayed.
It is noted that India has been one of silvers biggest consumers this year – as an alternative to gold. The Indian government imposed sanctions on gold imports in order to reduce the spend on gold but in doing so has restricted the amount of gold available to sell to consumers and is putting precious metal merchants out of business.
Analysts are expecting silver spot prices to recover and reach magnified profits before gold in 2014 for this very reason. Until the elevated Indian import taxes on gold are reduced then silver will continue to see record demands and when supply finally comes under pressure analysts predict a sharp rise in silver prices.