Silver and Gold Prices Rise Anticipating Chinese DemandApr 26th, 2011 | By Chris Strong | Category: Business and Finance
Silver and gold prices rose to record levels in London Monday in anticipation of increased Chinese demand. A report from the Chinese news site Century Weekly, citing unidentified sources, helped push silver for immediate delivery to a record $49.79 an ounce, and gold to $1,518.32 an ounce.
According to the Century Weekly report, the Chinese government plans to set up funds to invest in precious metals and energy. China has taken several steps lately to curb inflation by tightening money.
Around the world, demand for commodities has risen to its highest level since 2008 as a hedge against inflation. Concerns about US and European debt have helped drive the market up. Silver is rising fastest among raw materials, with demand spilling over from demand for gold. Over the past year prior to today, spot silver had more than doubled, while gold had increased by nearly a third.
The trend continued today. After climbing as high as 8.2 percent on the Comex in New York earlier in the day, silver futures for July delivery rose $1.096, or 2.4 percent, reaching $47.173 at 1:59 pm. Spot silver rose as much as 5.4 percent and fell back as much as 3 percent.
Meanwhile gold futures for June delivery hit a record $1,519.20 before settling at $1,509.10, a gain of $5.30, or 0.4 percent. The spot price rose as much as 0.8 percent.
Experts expect the bubble will eventually burst. But in the short-term, at least, demand for silver is surging.