Dealing Desk Update: Civil unrest boosts save haven buying of gold and silver

Feb 27, 2014·Roland Khounlivong

GoldMoney, the online precious metals dealer, has reported a week in which its customers in the west have resorted to some profit taking following the recent rise in gold and silver prices, with silver taking the biggest hit. However, there has been a small increase in precious metals being stored in its eastern vaults, and trading volumes remained steady.

GoldMoney's Head of Dealing, Roland Khounlivong, said: 'It wasn't surprising that we have seen some profit taking this week given the yellow metal's performance in the year to date. There haven't been any big moves, but silver has dropped back a little, widening the gold/silver price ratio again.

'Economic data was more positive this week which boosted the dollar and added pressure on gold, but this has been counteracted by the fear factor following the violence in Ukraine, and in some parts of Thailand. What happens over the next few weeks in particular with Russia's sabre rattling, will have an impact on the precious metal's price.

'Tomorrow will see some important economic figures out with EMU inflation and US GDP. Next week the focus will be on the UK and European Central Bank meetings on Thursday, ahead of US employment data on Friday.'

GoldMoney has more than 22,000 customers, and stores $1.3bn of precious metals for its customers worldwide.

16:00 27/02/14: Week on week prices: Gold rose 1.35% to $1,333.03; Silver slipped 1.84% to $21.30; Platinum gained 2.50% at $1,447.13 and Palladium, rose just 0.92% to $741.21.

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NOTES TO EDITOR

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GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for retail and corporate customers. Customers can trade and store precious metal online easily and securely, 24 hours a day.

GoldMoney has offices in London, Jersey and Hong Kong. It offers its customers storage facilities in Canada, Hong Kong, Singapore, Switzerland and the UK provided by the leading non-bank vault operators Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics.

Historically gold has been an excellent way to preserve purchasing power over long periods of time. For example, today it takes almost the same amount of gold to buy a barrel of crude oil as it did 60 years ago which is in stark contrast to the price of oil in terms of national currencies such as the US dollar.

GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every 3 months by two leading audit firms.

Visit www.goldmoney.com.

Follow the GoldMoney Dealing desk team on Twitter: @goldmoneyupdate