Regal Group International: Gold still climbing and silver at 30 year high.

Worry over the state of the global economy continues to spur gold buying.
 
Sept. 27, 2010 - PRLog -- Analysts and sector specialist have informed Regal Group International that gold’s strengthening is not likely to slow anytime soon. Spot gold recently broke through the $1,300 barrier on a weaker dollar and continuing economic uncertainty after the U.S. Federal Reserve raised expectations of further monetary stimulus measures for the economy and also expressed concern over low inflation.

"We may see a bit of short-term profit taking, I would say. Of course on a longer-term basis, there will still be an upward trend for gold prices," an investment analyst at Phillip Futures in Singapore told Regal Group International sources, adding that he felt that the end of the year may see prices hovering in the $1,350 to $1,400 vicinity.

Dealers have also noticed an increased demand from India, the globes top buyer, in spite of the record prices. India’s festival day of Dhanteras, the day when the nation’s jewellery stores ordinarily see their highest gold sales every year, falls in November.

"India is still buying. That's very good," a physical dealer in Singapore, who trades with India told Regal Group International sources.

Silver, considered the poor man’s gold, has followed bullions example, rising to a 30-year high after gaining nearly 30% this year alone.

"With gold at record high prices, investors are rediscovering silver also as a safe haven. For me, in order for silver to continue to rally, gold prices have to actually hold firm," Regal Group International was told.

The primary sources of demand for silver are for use in industrial applications and for jewellery.

"Investors are keen to buy and there's a bit of industrial demand for silver," a physical dealer on the Asian markets told Regal Group International sources.

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Regal Group International is a full service commodity trading advisory offering services to traders ranging from the beginner, with no experience in the markets at all, to the advanced trader who is looking for an avenue to place fast efficient orders.
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