Dealing Desk Update: Gold shines, but GoldMoney customers favour silverMar 13, 2014·Roland Khounlivong
Gold's safe haven status boosted its price this week, as the situation in Ukraine, and continued economic uncertainty, supported the metal up 1.8% on the week.
Whilst the safe haven factor is driving the general market, for GoldMoney customers it has been a different story. Head of Dealing at the online precious metals trader, Roland Khounlivong, said: 'Our customers buy gold for portfolio diversification, so this week as the yellow metal has risen they've been hesitating, waiting to see whether to profit-take or increase their exposure to gold. This has been reflected in a fall of 40% in our gross trading volumes on the previous week.
'However, GoldMoney customers have been taking advantage of the increasing gold/silver ratio and they have bought silver in greater quantities as they look to capitalise on its relative lower price.
'The trend we saw last year with precious metals being sold out of the west and placed in our eastern vaults was also very evident this week, with Singapore and Hong Kong the beneficiaries.
'Despite many GoldMoney customers holding back from buying gold, we are still seeing more buyers than sellers, which is the trend that has been evident since the start of the year. The Federal Open Market Committee meeting next Wednesday in the US could give our customers further insight into purchasing and general market direction.'
GoldMoney has more than 22,000 customers, and stores $1.5bn of precious metals for its customers worldwide.
16:00 13/03/14: Week on week prices: Gold rose 1.8% to $1,369.65; Silver fell just 0.4% to $21.24; Platinum was also flat losing only 0.3% at $1,474.75 and a similar story for Palladium, dropping 0.2% to $773.47.
NOTES TO EDITOR
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GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for retail and corporate customers. Customers can trade and store precious metal online easily and securely, 24 hours a day.
GoldMoney has offices in London, Jersey and Hong Kong. It offers its customers storage facilities in Canada, Hong Kong, Singapore, Switzerland and the UK provided by the leading non-bank vault operators Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics.
Historically gold has been an excellent way to preserve purchasing power over long periods of time. For example, today it takes almost the same amount of gold to buy a barrel of crude oil as it did 60 years ago which is in stark contrast to the price of oil in terms of national currencies such as the US dollar.
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