Overseas – Silver Hotter Than Ever

As the week opens prices in commodities begin to rally with much of the demand coming from overseas markets where silver has enjoyed new-found interest. As price fluctuations rock the experienced traders and keep them on their toes, those outside the industry are beginning to feel the effects of currency devaluation, European sovereign debt concerns, price increases for petroleum and the resultant cost increases for more of the items on their daily shopping lists. Many foreign buyers are looking to hard commodities as a place to protect their personal wealth with silver enjoying a larger percentage of their interest.

With returns on investment for silver outpacing gold for the first quarter as well as last year, the market consistently reports on increased industrial demand. Some insiders predict as much as a 10%-15% increase in manufacturing demand from last year’s level of around 3,000 metric tonnes.

The rising awareness of silver has resulted in unique interest from other areas as well. “This year, traders and jewellery houses have bought a large number of coins in 100-lots, since many corporates have decided to present a silver coin to their employees along with their annual increment and bonuses,” states an official of Sonawala Traders.

“It is a new trend with most companies who are doling out their annual payments this month.  Since the price fall of both precious metals has been huge over the last week and since gold coins are still quite unaffordable as a give-away present, bosses are giving smaller denomination silver coins along with the annual salary perks,” he added.