Gold Moves Up, Silver Gains on Industrial Demand

Posted by Adam Sharp - Wednesday, March 30th, 2011

Price update from Bloomberg BusinessWeek:

Gold gained for the first time in five days in New York as fighting in Libya and concern about European debt spurred demand for an alternative investment. Gold futures for June delivery rose $6.40, or 0.5 percent, to $1,423.90 an ounce...

...Silver for May delivery in New York rose 1.6 percent to $37.575 an ounce... Prices are up 21 percent this year, heading for a ninth straight quarterly advance, the best run of gains since at least 1975.

...Silver industrial demand may climb to a record 665.9 million ounces in 2015, from 487.4 million ounces last year, the Silver Institute and researcher GFMS Ltd. said in a report this week. Silver is used more in industry than gold.

Silver pulled back a bit, but was still up 1% at 1:30 pm. With industrial and investor demand ramping up, things are looking good for silver, though it will likely continue to be a volatile ride.

Palladium and Platinum both climbed slightly, but remain down for the year. The auto-manufacturing slowdown caused by Japan's crisis is likely crimping demand for the metals, which are a key component in catalytic converters.

Updated metals charts, last 60 days:

silver chart 3-30
Source: www.kitco.com

60 day gold:

gold chart 3-30-2011
Source: www.kitco.com

  +6

More like this...

China Buys 47% of the World's Gold
Analyst Greg McCoach discusses how rising Chinese gold demand will put significant strain on global supplies -- and may be the catalyst that will push gold prices over the $1,500 level.

A Comeback for the Gold Standard?
JP Morgan recently started accepting gold as collateral for clients. Today legislation has been introduced in Utah to allow gold and silver coins to function as currency on a voluntary basis, which is currently illegal.


Silver Pandas