Bullion is a title given to precious metals, gold, silver, copper, nickel or aluminium. Investors are sometimes solely interested in gold and silver. Historically gold has been considered more valuable than silver, however silver stocks are currently declining with more momentum than gold, and this could be because it is a preferred material for industries due to its conductive nature.
Bullion is measured in mass and is typically in the form of a bar, although bullion coins are equally measured by mass, quality and minting. Today´s market is a little down with end of day values yesterday taking a pullback compared to yesterday a.m. prices. This may be affected by the Syria military threat or even because of less trading, while the U.S. is preparing for their Labor Day Holiday down time.
The market did see some knee jerk reaction with news of the U.S. talking about pulling back on Quantitative Easing, but analysts and investors are still waiting for a trading signal, most likely a sell, however for now prices are still rising even with this temporary glitch. Currently trading at $1406.25 Thursday 29th August 2013, this is $13.25 down from yesterday’s closing price.
Gold is down $248.50 and silver is down $6.07 since this time last year, but it is above the lowest value we have seen this year and is experiencing a very bumpy ride up, but it is still in a positive up direction.
Demand for bullion
Physical bullion demand is still strong, and silver is stronger than gold. Over 70% of gold traders and over 60% of silver traders are buying. These moves are likely to be in response to yesterday’s dip in value, and looks like traders are expecting a recovery.
Bullion coin sales were up over 40% since the same time last year and are heading towards a record to beat 1999. A particular rush on silver coins sales has been seen, gold is still selling but the rush for silver is leading the race.
Reviewing the 24 hour spot price chart, both metals are making a recovery. However this is not with great momentum, neither have made it back to yesterday’s high, but nor have they seen any downward momentum. The bulk of investors are pushing forward with buying power, but as previously mentioned with end of week trading and especially with Labor Day coming analyst and investors alike do not seem to be expecting any huge trends to appear rapidly.
The question on everybody’s lips is, should I invest while prices are struggling? Well judging by China’s buying momentum, it looks like they think it’s a good time to take advantage of the temporary pullback.
Consider this, bullion of both of these precious metals have a long way to go before they recover, along the way there will be lots of gains. You can hold your stock for a long time to aim for larger gains, or you can play the market with buying on a pull back and sell when it peaks.