Daily Precious Metal Update

June 30, 2009 - In the past few months, there has been a lot of speculation about the future of precious metals, and today I would like to focus on this very important topic because there are many different factors that should be considered when looking at these elaborate investing markets. The United States is currently facing the worst financial crisis since the Great Depression, and this has caused many wise American investors to flock into gold and silver in particular as a hedge from vulnerabilities with dollar-backed assets. In order to understand what could happen with the future of precious metals, it’s very important that we take a look at the history of these markets, because history frequently repeats itself. As you may already know, the United States Government has been overprinting dollars in order to rescue several corporate giants, and also to pay off billions of dollars in toxic debt. Historically, fiat currency overprinting creates long-term inflation, and with the Federal Reserve planning to increase interest rates before a true economic recovery is seen, the future of precious metals could be much more bullish than many investors believe. Our country faced a similar problem during the late 1970’s, when inflation was growing at a rapid pace and the Federal Reserve increased interest rates. Both gold and silver increased in value more than 800% between the years of 1978 and 1980. Do you think that history will repeat itself within the next few years?

By around 4 PM Eastern Standard Time, precious metal spot prices are headed downwards, with gold currently trading at $926.80 per ounce, down $10.50 for the day while silver is currently trading at $13.53 per ounce, down $.31 for the day and platinum is currently trading at $1175 per ounce, down eight dollars for the day.

Daily Updates Archive

Danny Burns

Senior Staff Writer - Precious-Metal.org