Silver Bullion Coin Premiums Rise; Asian Demand for Gold Robust with 'Illiquid Market' in Hong Kong

goingbroke

Markets have recovered somewhat from the recent sharp sell offs despite the worsening nuclear situation in Japan. Gold and silver have made very tentative gains from the falls seen yesterday as commodity and equity markets (and the Nikkei in particular) have stabilised somewhat after the recent sharp falls.

physical demand for bullion remains robust

jmski52

Increasing premiums for physical in the midst of a correction are fairly routine, but I have to note that this is now occuring at relatively high price levels, as opposed to previous corrections. This tells me that the physical market is still very strong.

The fact that the paper market can sell off at the whim of hot money looking for a home in addition to the whims of JPM - that carries about 1/100th the weight of the strength of the premium for physical during a paper correction, in my opinion.