As precious metals prices fell across the board this week, online bullion dealer, GoldMoney saw its customers also selling across all metals.
GoldMoney's Dealing Manager, Kelly-Ann Kearsey said, 'Gold was by far the most likely to be sold this week, followed by silver and although the sell-off has been mostly out of the western vaults in the UK and Switzerland, we have also seen some selling out of Hong Kong.
'What is interesting is that we've seen this behaviour from our customers before. It's not large holdings being completely liquidated, but small order sales. Our customers have sold before when the price is falling, then they wait until it turns around and buy back when it is rising again consistently, effectively speculating some of their holding to buy back at a lower price.
'The other trend for this week has been that some of our older, dormant accounts have started to show buying interest, so clearly there is some appetite for the lower prices. Indeed while gold has hit a four and a half year low this week, silver has been even harder hit. The gold/silver ratio is at 74, the highest it's been in five years which now means silver is relatively speaking cheaper than gold since 2009.
'Prices could be further impacted tomorrow if the US unemployment figures continue to boost the dollar, particularly with the yellow metal which has lost its safe haven sheen. Next week's Chinese retail sales and industrial production figures could provide further direction amid speculation of a slowing down in Chinese gold purchasing in the last few weeks.
16:00 06/11/14: Week on week performance: Gold lost 4.3% to $1,146.28; Silver slipped 5.9% to $15.39; Platinum also dropped 3% to $1,199.95 while Palladium fell 3.6% to $751.00.
NOTES TO EDITOR
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 currently has over 22,000 customers worldwide and holds $1.2billion of precious metals in its partner vaults.
GoldMoney has offices in 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.
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.
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