Low gold ratio, Bernanke’s statement that the central bank may buy more bonds boost prices.
Silver gained to the highest level since 1980 as the gold ratio dropped to the lowest in more than three years, bolstering demand for the metal among investors who seek to protect their wealth. Gold gained.
One ounce of gold bought as little as 47.386 ounces of silver as of 2:08 p.m. Singapore time, the lowest level since February 2007, according to Bloomberg News calculations. Gold and precious metals also gained after Federal Reserve Chairman Ben S Bernanke said the central bank may buy more bonds to further boost the economy.
“There is some substitution impact on silver as investors also see the metal as a store of value, just like gold,” Ben Westmore, an analyst at National Australia Bank Ltd., said today by phone from Melbourne.
Silver for immediate delivery advanced as much as 1.7 per cent to $29.915 an ounce, the highest price since March 1980, and traded at $29.7663. The metal has advanced 77 per cent this year, outperforming gold’s 29 per cent gain.
Speculative long positions, or bets prices will rise, outnumbered shorts by 34,034 contracts on Comex futures as of November 30, a 12 per cent jump from the previous week. Silver holdings by exchange-traded funds increased 0.1 per cent from the previous day to 477.9 million ounces as of December 3.
ETF Securities started an exchange-traded fund backed by silver, platinum and palladium, known as ETFS Physical White Metals Basket Shares on the NYSE Arca on December 3. The fund is weighted with 55 per cent in silver, 33 per cent in platinum and 12 per cent in palladium, according to the company.
Gold for immediate delivery climbed 0.3 per cent to $1,418.51 an ounce. Spot gold rose 3.7 per cent last week, the second straight weekly gain. The February-delivery contract climbed as much as 0.8 per cent to $1,418 an ounce on the Comex in New York.
The dollar was little changed against a basket of six major currencies. The Dollar Index dropped by the most in six weeks December 3 after a US government report showed employers added fewer jobs than forecast in November and the unemployment rate rose to 9.8 per cent. Bullion typically moves inversely to the US currency. Gold reached a record $1,424.60 on November 9.
Hedge-fund managers and other large speculators increased their net-long position in New York gold futures by 3 per cent to 227,607 contracts in the week ended November 30 from the previous week, according to US Commodity Futures Trading Commission data.
Domestic silver sets yet another peak
PTI adds: In a constant upsurge in the bullion market, silver and its coins today spurted to new heights by recording handsome gains on brisk buying by industrial units and jewellery makers, amid a firm global trend. While silver spurted by Rs 500 to set an all-time peak of Rs 45,200 a kg, its coins zoomed by Rs 2,200 to Rs 49,000 per 100 pieces on fresh purchases by jewellers and industrial units for the ongoing marriage season. On the other hand, gold held steady in restricted trading activity at existing higher levels.
Silver coins sky-rocketed by Rs 2,200 to Rs 49,000 for buying and Rs 49,100 for selling of 100 pieces on strong wedding session demand.
Beside, a firm trend in overseas markets, pick up in demand due to the ongoing marriage season further supported the uptrend in silver.
On the domestic front, silver ready shot up by Rs 500 to set a new peak of Rs 45,200 a kg and weekly-based delivery by Rs 590 to Rs 44,815 a kg.
However, gold of 99.9 and 99.5 per cent purity held steady at Rs 21,000 and Rs 20,880 per 10 gm, respectively on lack of buying at existing higher levels. Sovereign also traded at previous level of Rs 16,750 per piece of 8 gm.
