Silver Beats Gold – Asian Demand Eases but Challenges London as World Hub

Despite rallying from a 1-day low of $1310 per ounce lunchtime Friday in London, gold was still trading 1.4% down from last week while European stock markets also reversed earlier losses. Silver initially dipped 2.7% last week but the recovered to finish at $21.80 last Friday. “Asian demand for physical gold picked up briefly this week when prices fell below $1300 an ounce,” says Reuters. Today Wed October 9th, Silver remains strong hovering at $21.84

Indian wholesalers continue to shy away from gold at the moment, the Times of India reports, with the state of Gujarat seeing its second-lowest gold imports of the last 5 years in September as confusion over anti-import rules persists.

“Macau [in contrast] imported more gold jewellery than food and drink in the period between January and August,” reported the Chinese city’s Statistics and Census Bureau today.

“Where would gold be,” asked Jeremy East of Standard Chartered Bank at this week’s LBMA conference in Rome, “if China hadn’t come in and mopped up” what India didn’t buy over the summer?

“Gold has within living memory remained very much a London-centric market,” writes Ross Norman of Sharps Pixley in the latest edition of Commodities Now.

“[But] not only is the epicentre of gold trading moving East, so is the vaulting. The emerging nations are making it ever easier and cheaper to buy and store. Their regulations and taxes are infinitely less onerous.”

Singapore in particular is already seeing “significant flows of gold” according to ANZ Bank’s local head of FX and commodities Eddie Listorti.

“[Gold is] expected to rebound in the near term,” says the Bureau of Resources & Energy Economics in Canberra, due to the US Federal Reserve’s decision not to “taper” its money-printing quantitative easing program in September.

However, “speculation on the tapering is likely again in 2014,” it goes on, “particularly if more positive US economic data is reported.”

There’s a great wealth transfer taking place right now. Are you on the losing end or the receiving end?

Wealth Transfer Planning

Precious metals have always been a safe haven for investing in high inflationary times. Historically speaking, a recurring cycle that always seems to repeat itself is periods of high inflation as a precursor to the crash of paper currencies. Those who understand this wealth cycle and position themselves in gold and silver are those who prosper.

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The Great Wealth Transfer

Watch Terry Sacka: The Wealth Transfer show on the Christian Television Network discussing the financial and influential decline of the Western world and the simultaneous wealth increase of the East. With the wealth of nations shifting, it’s imperative to understand moving forward how hard tangible assets will allow you to maintain a quality lifestyle.

Visit the Wealth Transfer archive for more episodes.

Learn more about how buying gold and silver today is a smart move for your investment portfolio.

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» Read our article: Why Silver is Going Up Today?

» Read our article: Why Gold is Going Up Today?

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