Sanwa Holdings – Precious Metals Plunge As Investors Panic.
Sanwa Holdings has advised clients with positions in the precious metals market to hold their nerve after gold and silver resumed their steep declines during Asian trading hours.
A strategist at “Sanwa Holdings” said, “There is nothing permanent about these price falls. It’s simply a case of investors selling gold and silver to meet margin calls in other markets like equities and foreign exchange.”
Gold dropped to below $1600 during afternoon trading while silver shed more than 20% of its value to stand below $27 as European markets opened.
“Sanwa Holdings” said that, despite the selloff, it has not changed its outlook for gold and silver prices. “We still expect gold to reach $2000 by the end of the year and we see silver returning to the $50 an ounce level,” remarked one of the firm’s metals researchers.
Investors are selling riskier assets like equities and commodities as the prevarication among European leaders over the best way to draw a line under the sovereign debt crisis continues.
“Sanwa Holdings” advised clients wishing to increase their holdings of precious metals to regard the selloff as a premium opportunity to gain additional exposure to what it sees as a continuance of the secular bull market in gold and silver.
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