Daily Precious Metal Update

April 9, 2009 – Bullion bars and coins are losing value today after seeing small increases in the last two trading days based on safe haven demand due to inflationary pressures. It seems like many American investors are still participating in risk-taking by purchasing stocks and bonds at the moment, and even Bloomberg.com, Mark Faber and George Soros have said that the flock to equities will be limited due to overall losses in the United States Dollar. Inflation continues to be a large concern to many wise investors during this recessionary cycle, and it’s odd to see the optimism we’re seeing with stocks at the moment. The reason investors purchase precious metals such as gold bullion bars and coins is to hedge themselves from inflation and currency debasement, and despite the recent stimulus and bank bailout packages, both of these negative economic factors are still being seen today. This goes to show that short-term movement with equities and precious metals could change places in the next few weeks as wise American investors begin flocking from devaluing dollar backed assets into gold bullion bars and coins and other safe haven assets.

During the midday trading hours, precious metals spot prices are showing mixed fluctuation, and the gold spot price currently sits at $877.90 per ounce, down $2.10 for the trading day while the silver spot price currently sits at $12.34 per ounce, up eight cents for the trading day while the platinum spot price currently sits at $1187 per ounce, up $12 for the trading day. Platinum has been doing considerably well in the last few weeks, so let’s see if gold and silver can start catching up as safe haven demand continues to rise.

Daily Updates Archive

Danny Burns

Senior Staff Writer – Precious-Metal.org