Safe haven demand is pushing gold prices higher in a.m. trading Tuesday as global stock markets see another sell-off. Gold last reported a.m. is $1141.30 and silver is $14.67.
Poor economic data out of China is fueling market concerns as the Chinese government’s official purchasing managers index (PMI) fell to 49.7 in August–the lowest reading in three years. The private Caixin PMI index came in at 47.3, which is a six-year low. Other Asian and European stock indexes are lower Tuesday as well. Japan’s Nikkei index was down 3.8% on the day.
Gold futures ended lower to start the new trading week on Monday, the fifth decline in six sessions. They made solid gains in August that tallied to 3.4% for their biggest monthly increase since January, and a marked contrast from their 6.5% loss in July.
Silver futures are gaining for the third consecutive day as overall prices have declined 6.5% year to date.
Demand for both metals is generating a record increase especially for silver as most products are now seeing a one to two week delay. The Silver American Eagle and the Silver Canadian Maple Leaf are both in the unknown delay category as mints race to meet physical demand. Over the past 12 months, we’ve warned buyers that if silver demand continued, we would see shortages and we are here.
The opportunity for investors to purchase physical silver $8.50 below production costs is too good to pass up.
The U.S. Mint reports that American Gold Eagle sales for the month of August ranks second highest for a 2015 month.
American Silver Eagles remain on a record annual pace despite sales restrictions that went in place after they temporarily sold out in July. Their monthly total was the third highest of the year, right behind January and July.
We can expect continued heavy demand for both metals with possible delivery delays, as long as prices remain suppressed below production costs.
Now is a great time to begin protecting your assets with gold and silver. Give us a call at 1-800-577-3195 Ext.1 to begin the process.
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