Gold Futures and Physical Demand

While gold posted two consecutive weeks of gains since the recent drop, it has still struggled to surpass its 10-day moving average. Here is a look at a few of the stories surrounding gold and silver this week.

Brighter Outlook for Gold Futures

Gold exchange-traded products have seen tremendous outflows in the past two weeks, but recently have begun to slow – yet another sign that confidence the yellow metal may be starting to return. This may have started to tempt futures investors back into the market. Gold still has a long way to come, however preliminary signs like these remind us of the opportunity that arises for investors focused on value.

Physical Demand for Gold and Silver

Recently the U.S. Mint has been flooded with orders for coins. The Mint has stated the shortages in recent months are due to an overwhelming demand. Year to date, over 19 million one-ounce silver American Eagles have been sold which is a significant rise from last year. The U.S. Mint announced it will be ramping up for the Monday release of the 2013 America the Beautiful 5 oz. Silver Bullion Coins. This will certainly help with demand, but most investors still are eager to get their hands on pure bullion bars over the 5 oz. coin. It looks as if the coin will be priced about 40% above its actual bullion value – meaning it will have inherent bullion value as well as collector/numismatic value. Nonetheless, demand for physical bullion is on the rise.

Resources: CNBCMarketWatch