Rising Precious Metals Pricing and How It’s Affecting the Market.
Every single precious metal has been on the move lately. That includes gold, silver, platinum, palladium and rhodium. Precious metal investors are thrilled, and hype in the market is starting to show. Since the metals hit their heights in 2011, we have not since seen the same hype and excitement in the market. However, those who have been getting involved are definitely starting to smile just a bit. Gold is up almost 20% over the last 365 days. Silver is up about 18%, platinum over 28%, palladium almost 82% and rhodium over 245%. It is interesting that the non-traditional precious metals are outperforming the traditional gold and silver. Regardless, the last year has treated investors of bullion quite well. How is this affecting the market? How is this affecting small and large coin and bullion dealers? The truth is that we have seen a steady increase in demand over the last two years, but not quite like in 2011. However, the last few months have shown a large uptick in purchases of the metals. We are starting to see some excitement in the metals and people are starting to stack the metals as they see they have seemingly confirmed an uptrend. If silver and gold prices break the $20 and $1,650 mark respectively, we think demand will increase even further, which will likely have a positive impact on the prices of the metals. We think those price level will also start to entice some people to consider selling. For the last few years, we have seen many more buyers than sellers of the metals. Many investors were holding onto their positions, waiting for the metals to rebound closer to their purchase price. We have spoke to many dealers in our network who are smaller or what many call “mom and pop shops,” and they have told us that they have noticed the same trend in demand. They are hoping for the metals to increase even further so that more individuals come in to sell their holdings. We have also seen much more demand in the recent years for what we like to call “bullion with muscle.” This includes 90% Silver Kennedy Half Dollars, Morgan Silver Dollars, Peace Dollars and Pre-1933 Gold. We are currently seeing premiums as tight as we have seen before. This means you can buy pieces that have both numismatic and precious metal value. On the silver side, we have seen big demand for 90% silver half dollars and silver dollars. On the gold side, many collectors and investors have been adding $10 and $20 Gold coins to their portfolios. These types of purchases allow individuals to have a hedge against a downward swing in pricing while still benefiting from an upswing. On a whole, the demand for precious metals has been on the upswing, and we think demand will only rise with the increasing prices of the metals. Only the future will show what will happen, but we know gold and silver bullion investors will be on the watch. Rare coin collectors are also starting to get in on the action and are keeping a close eye on the market.
Bullion.Directory precious metals guest post 19 January, 2020
By Nick Adamo
President at Bullion Shark LLC
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