Metals Minute 10: Growing Demand for Physical Precious Metals
It has been a trying week for the metals, but it seems the worst is over for now, and we are beginning to see a recovery. The main benefit we have with a week like this is precious metals available at sale prices in an overall rising market.
For the week Gold was down 4% to $1,859.60, Silver was down 7% to $25.51, Platinum was down 2% to $1,079.02, and Palladium down 1% to $2,435.
For the 1-year period, Gold is up 20%, Silver is up 42%, Platinum up 11%, with Palladium up 14% since this time last year.
Something to keep in mind is the growing demand for physical metal. Gold and Silver's price takedowns were largely a paper drill, with massive amounts of paper sales dumped to depress the paper price. But looking at the price for American Eagle coins, the price to purchase the metal is still higher than the spot price last week.
Depending on the payment method, Gold Eagles are about $150 over spot, Silver Eagles $5 over spot, and Platinum Eagles $300 over spot. With the physical demand we see, the current drop in prices is an excellent buying opportunity in a rising market.