TSXV:NORA.H - Post by User
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chumpismeon Mar 16, 2009 7:55am
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Silver ETFs in big demand; Gold coins in short sup
Silver ETFs in big demand; Gold coins in short suphttps://www.commodityonline.com/news/Silver-ETFs-in-hig-demand-Gold-coins-in-short-supply-16005-3-1.html
TGR: How do you see silver reacting relative to gold?
JF: Looking at its performance over the last three or four months, I think it’s shown itself to be a currency hedge and a currency alternative like gold. Silver had a tough time last year. It tumbled with the base metals. But again, since October, the performance has been good and we’re seeing high demand for the silver ETF, a shortage of coins and bars. So it’s acting as a currency alternative just like gold now.
TGR: What do you make of the shortage of the coins and the premiums to the spot price?
JF: It’s a small but growing corner of the market, so to me it’s an indicator of investor sentiment. It’s not that big a demand driver. When you look at the tonnage, it’s modest. But it tells me that the sentiment among investors, especially individuals, is very positive. From what I hear, it’s mainly high net worth individuals who are buying the stuff up with a long-term view. It’s quite a leap to go out and invest in physical gold. If a few are actually doing it, then many, many more are probably considering it................