Daily Precious Metal Update

August 6, 2009 - The latest gold projections continue looking bullish as several market analysts are forecasting a powerful future for the precious metal based on growing inflationary fears which historically sparks safe haven demand. In the past eight years, the spot price of gold has climbed more than 300% while several stock indexes contracted between 30% and 50%. According to several market analysts, the current financial crisis has exposed major vulnerabilities with mainstream investing markets, thus don’t be surprised if more and more wise investors begin flocking to safe haven metals within the next few years.

Gold Spot Price = $963.70 per ounce, increasing $.90

Silver Spot Price = $14.57 per ounce, decreasing $.10

Platinum Spot Price = $1261 per ounce, decreasing $22

Earlier in the year, there were some very interesting gold projections saying that a significantly weaker United States Dollar could spark skyrocketing safe haven demand. Some of the most speculative gold projections mentioned that the spot price of the metal could climb above and beyond its all-time record high of $1033 per ounce to around $1500-$2000 per ounce before the end of the year. These projections revolved around a significant loss of confidence with dollar-backed assets, yet unfortunately it appears that this loss of confidence has not occurred just yet. Many American investors are still diversified in stocks, bonds and real estate after the United States Government mentioned that an “economic recovery” might be underway, when in reality inflation and unemployment are growing to dangerous levels as our economy continues to contract. The question is, can the gold spot price reach its projected levels within the next few years?

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Danny Burns

Senior Staff Writer - Precious-Metal.org