The high demand around the world for physical gold and silver continues its race. In this short update we provide some highlights from different parts of the world, based on the latest reports.
Premiums for gold and silver bars have jumped higher all over the world. They have surged to multi-year highs in Asia. Reuters reports overnight that premiums are surging due to “strong demand from the physical market, which has led to a shortage in gold bars, coins, nuggets and other products.”
Shortages of gold and particular silver coins and bars is not confined to the small coin and bar market and there are also supply issues in the larger bar market with kilo bars being increasingly difficult to secure.
Swiss refineries are struggling to meet global demand for refined gold bars. They have been cleared out of their stock of kilo gold bars – the preferred form of gold bullion amongst many store of wealth, affluent buyers in Europe and Asia. Buyers have been told that they will have to wait until late May prior to receiving delivery on paid for product.
Silver coins and bars can now not be bought from the largest bullion dealers in the U.S. who have been cleared out of stock in recent days. Unlike after Lehman Brothers where there were shortages and delays of 3 to 4 weeks, there is no guidance being given as to when certain gold and silver coins and bars will be available again.
“The increased physical demand seen since the price correction supports the metal and affects the trading premiums,” says a note from German refining group Heraeus.
Gold traders in Dubai meantime continue to report premiums over the spot gold price of up to $10 an ounce for physical bullion.
As reported by our Mexican contact Guillermo Barba, physical demand for the famous “Libertad” silver ounce has soared in Mexico. The following figures are from the Bank of Mexico (Banco de México or Banxico).
In the month of April 2013 (up until April 23th), the total amount of ounces put into circulation (sold) by Banxico was already 174,055 Libertad coins, which is already higher than the first three months of 2013 combined (169,928 coins: January, 46,693; February, 80,929; March 42,306).