Silver prices plummet as mints can't keep up with demand
(Kitco News) - Precious metals have plunged in the markets, but there is still demand for physical coins in the midst of the coronavirus outbreak, this according to Phil Streible, chief market strategist of Blue Line Futures.
“I can tell you one thing, I called around the last couple of days trying to buy physical metals, specifically physical silver, and silver was a $1.50 to $2.00 over spot, so there is an underlying demand that is out there right now, just more on the physical side,” Streible told Kitco News.
His comments come as spot silver retreated $1.70 an ounce on Monday.
Streible noted that while bonds have done well, there may not be much upside left given the run-up we have already seen.
“It seems like the only place that anyone found any safe haven in was the bond market, but with yields dipping back down below 0.64%, I think that there’s not much room there on the upside,” he said.
On metals, Streible said that it is better now to be positioned in the physical space, rather than the miners or leveraged products.
Gold should be bouncing back from this selloff later in the year, he said.
“The key level you have to look at in gold is $1,508. That’s the 200-day moving average, if we don’t close below there, I think we’d still be in a pretty healthy market,” he said.