Silver Shines Again, Gold Fixes Higher At $298.90

Silver continued to climb higher in very heavy trade on Thursday while was gold fixed higher in London, dealers said.

Gold fixed at $298.90 from the previous fix at $298.15 an ounce. Spot gold was last bid at $299.25/$299.75 from its close at $298.20/$298.70 an ounce.

Silver opened steady on Thursday morning but jumped more than 20 cents in later trading to above $7.40. It was last bid at $7.41/$7.46 after a high of $7.50 bid.

Dealers said there was massive trade in silver. There is buying everywhere. Basically, it is just universal borrowing, and there is just enormous buying, one London dealer said.

 

Silver's climb began after US investor Warren Buffett announced he had bought up around 20 per cent of the world's estimated annual supply of silver.

Another dealer said Buffett had probably forced those people who were short into covering their positions.

These people have been told there's a squeeze going on so they are rushing to short cover. He's trying to flush those people out of the woodwork, she said.

Tightness in silver supplies for immediate delivery was confirmed by the rising one-month lease rate for the metal which rose through early Europe to more than 50 per cent compared with the more usual two or three per cent.

The same dealer said any talk off imminent dishoarding of silver from India, the world's largest consumer of a metal it uses for heavy ornamental jewellery, was premature even if the price rises another couple of dollars.

They could be ripping from their wives' necks and selling it but it would take a good month before that's in the market, she said.

Asked where the market might head next, the dealer described it as impossible to predict with technical charts offering few clues.

There are absolutely no technicals to help us out here and above $7, she added.

Gold was seen up because it had broken through a technical chart point.

Gold looks bearish because it broke through an uptrend on the charts, another dealer said, adding that bullion was playing very much second fiddle to silver at the moment.

Platinum was fixed at $397, up on the Wednesday afternoon fix at $389. Spot was last bid at $396/$398.

Palladium also fixed higher at $239 an ounce against the previous afternoon fix at $238. Spot was last bid at $238/$240.