Silver bullion demand is skyrocketing in Australia

Investment demand to buy silver bullion in Australia is skyrocketing, according to Gold De Royale, Australia’s largest silver bullion dealer.

“With the US national debt crossing $15 trillion, investors are preparing for the worst-case scenario, hyperinflation,” according to George Vo, Sales Manager of Gold De Royale.

We have never seen this much demand for silver, with silver price at the perfect buying opportunity. Investors are doubling up their precious metal portfolio with silver bullion.

Investors do not want to hold money in banks these days, fearing a bank run. Moreover, the financial situation in the US is not getting better.

The so-called super committee in the US, who was set up to save $1.2 trillion, was not able to reach to any bipartisan agreement. Uncertainty in the US economy will lead investors to look for safe-haven investments, such as silver bullion.

“Since the collapse of Lehman Brothers in September 2008, sales of silver bullion have been very strong. For many silver investors, the white metal is seen as a more highly leveraged alternative to gold, with greater potential.”

Historically, the ratio between gold and silver has been in the range of 12:1 to 16:1. This meant that for each ounce of gold you could exchange it for 12 to 16 ounces of silver. Today, the ratio is near 50:1 as silver is undervalued relative to gold.

As gold price increases we will see that gap narrow. This provides investors a massive profit potential.

“Our market analysis is showing that the average price of silver bullion could rise to $45 an ounce in 2012, as investment demand is expected to support it”, said Gold De Royale. As investment demand increases, we could see silver reach higher than $50 by end of 2012. – Bullion Street

Posted by VBN on Nov 29 2011. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry