Sharon Epperson and Jessica Golden
Nov 29, 2010
The price of silver is surging and so is business at many coin dealers across the country. At Plaza Collectibles, an appraisals shop in Manhattan, owner Lee Rosenbloom says he’s seeing a tremendous demand both in new and older silver coins. “This is probably the strongest demand there’s been in the last 25 years,” he says.
Silver prices have soared 60 percent in 2010, driven in large part by a strong investment demand, particularly strong buying of exchange-traded funds, or ETFs, backed by the physical metal.
“ETF demand has been an important driver of prices because investors have prepositioned themselves for this central bank buying by emerging markets” says Francisco Blanch, Head of Global Commodity Research at Bank of America-Merrill Lynch.
Other leading gold analysts agree this buying frenzy will continue. Philip Klapwijk, executive chairman of the consulting firm GFMS, says he expects to see $4 billion on a net basis flurrying into silver and gold investment this year. Holdings in the largest silver exchange-traded fund, iShares Silver Trust, are near a record high, trading up 62 percent year to date (as of closing on November 23).
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