Silver, gold fall further on global cues

Silver, gold fall further on global cues
On Saturday, the prices of the precious metals declined as a result of the moderate selling activity by the traders in the midst of the constant bearishness in the overseas markets.

The silver ready (.999 fineness) declined by Rs 125 per kg to end at Rs 51,585.

Similarly, the standard gold (99.5 purity) fell by Rs 45 per 10 grams to close at Rs 21,585 as against Rs 21,630 yesterday while pure gold (99.9 purity) also fell to end at Rs 21,690 from Rs 21,735 previously.

Globally, the gold and silver fell over fading uncertainty of Eurozone debt problems in turn pushing investors to place their bets elsewhere.

Moreover, in New York, the gold for the August contract fell by $20.20, or 1.3%, to $1,482.60 an ounce on the COMEX division of NYMEX yesterday.

The silver for the September contract shed $1.13 or 3.2% to $33.71 an ounce.

The gold futures ended higher due to the concerns over spreading of unrest across the Middle East that lured investors to safe-haven assets, in New York while the gold for April delivery gained to $1,375.10 an ounce on the COMEX division of NYMEX.

The total above ground stocks of gold is estimated to be around 1,63,000 tonnes by Gold Fields Minerals Services (GFMS) as on end of 2008 and out of this total stock, 51% is estimated to be present as jewellery, 18% as official reserves, 17% held as investment, 12% used for industrial purposes and 2% is unaccounted for.

Meanwhile, some of the worlds gold markets are OTC markets at London (LBMA), New York and Zurich, Gold derivative exchanges at New York - CME (COMEX), Tokyo (TOCOM) and Mumbai (MCX) while Istanbul, Dubai, Hong Kong and Singapore are doorways to important consuming regions.

Gold is the oldest precious metal known to man and for thousands of years it has been valued as a global currency, a commodity, an investment and simply an object of beauty.

Read more about: silver, gold, commodities, investment
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