Gold and silver buying hits three-year high

New York (Jun 7)  Demand for gold and silver has reached a three-year high among users of online physical metal exchange Bullion Vault.

Overall trading activity in May - private investors either starting to invest in the precious metals or adding to their existing holdings - represented the highest since spring 2013.

That was when both global stock markets and bond markets fell out of form as America's Federal Reserve moved to unwind quantitative easing. The market reaction at that time was described as the 'taper tantrum'.

There are two drivers behind the buying spree. The first is the fact that during the month of May both the gold price and the silver price dipped, falling 7 per cent and 10 per cent respectively.

Source: MoneyObserver