Demand for precious metals is unusually high for the summer

Mrs. Grigorova, is there an increased demand for investment metals in recent weeks in connection with the increase in prices of precious metals on world markets?

The demand for precious metals is absolutely unusual for the summer period. It usually increases after September but this year July and particularly August are marked by the “gold rush”. Transactions in precious metals have been repeatedly increased and just for comparison with August 2010, the turnover has increased over 6 times, and the income - more than seven times. The total volume of transactions carried out by Fibank from the beginning of this year to now exceeds 6 million BGN.

There are forecasts that silver shall surpass gold in growth of price till the end this year. Do you register an increased demand for investment silver, or do people rely on the “brilliance” of gold?

Traditionally, interest in gold is higher. But many younger investors over the past two years are turning more often to silver. At the beginning of this year, its price rose ahead of that of gold and reached almost 50 USD / troy ounce and now, after a period of decline it again reaches values around 45 USD. If the industrial consumption of silver increases, as expected by many analysts, the price will surely increase. We also cannot ignore the fact that the price of the white metal makes it more accessible to a wider range of investors.

What investment products do you offer and where are they made?

This year Fibank made a peculiar anniversary - 10 years since the beginning of transactions in precious metals. We offer standard investment bullions from 1 to 100 g at individual orders and bullions of 250, 500 and 1000 g, almost all gold and silver investment coins, bullion medallions of different weights and images. They are produced in the mints of countries such as Australia, Austria, USA, Canada, South Africa, and in the New Zealand Mint, of which we are the official representative for Bulgaria and the Balkans. A large number of the products offered at Fibank, are original and unique product created by the team of Gold and Coins Directorate.

Do the buyers of these products usually take them as a gift or buy them as an investment?

Our various products are used for different purposes. Lately, however, people definitely buy them mainly for investment purposes. The emphasis in gifts comes later, at the end of the year with Christmas and New Year.

What are your expectations for the price of precious metals by the end of the year? Will there be a "gold bubble" or the prices will continue to go up? Is the time suitable to buy precious metals?

In general, we expect the prices of precious metals to go up. The gold could almost with no effort to overcome the psychological barrier of 2000 USD / troy ounce and silver - 50 USD / troy ounce. Currently, the platinum is relatively undervalued, so there may be surprises in its quotations.

For the past more than 20 centuries of human history, gold has never been a bubble, but prestige of rulers, a guarantee for the stability of political regimes and countries. Not surprisingly, many central banks have significantly increased their gold reserves over the past 3-4 years. Bubble could only turn to be the countless papers supposedly secured by gold. The desire of many owners to cash them down, as it may sound funny the word associated with gold, would constitute a serious deficiency in stocks worldwide. Even in the moment the physical gold is not enough and supplies for larger orders are delayed by at least 1-2 months. Each moment is suitable to invest in precious metals because they are a long-term investment instrument and their return after at least 5-10 year will be the highest possible. As unpopular as it sounds, gold is an investment for wealthy people, not for poor speculators who rely on quick profits.