Daily Precious Metal Update

April 24, 2009 - Since the beginning of the year, several market analysts have made gold projections that many people considered a bit speculative, but after the piles of recently released negative economic data, the overall sentiment about the future of precious metals is looking very bullish yet again. One of the biggest concerns to many investors at the moment is the devaluing of the United States Dollar. According to Bloomberg.com, the United States Government and Federal Reserve have pumped more than $10 trillion into global economies as a preventative measure from an economic collapse. This overprinting of fiat currency is expected to create inflation down the road for our economy, and historically one of the only methods of protecting an investment portfolio from inflation is through a diversification into precious metals. Gold in particular is considered the ideal safe haven asset because wise investors flock to it when they fear problems in their economy. This being said, the latest gold projections are reflecting further fear in the minds of American investors throughout this financial crisis.

By around 1:30 PM Eastern Standard Time, we are noticing significantly higher safe haven demand and lower demand for industrial metals, and this has pushed the gold spot price up to $913 per ounce, an increase of $9.20 for the trading day while the silver spot price is up to $12.94 per ounce, an increase of $.12 for the trading day and the platinum spot price is down to $1175 per ounce, a decline of four dollars for the trading day.

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Danny Burns

Senior Staff Writer – Precious-Metal.org