Daily Precious Metal Update

July 20, 2009 - Many Americans are now deciding to invest in precious metals as spot prices are beginning to climb after last week’s stale market movement. The United States Dollar Index is currently in the spotlight as speculation is arising about a sooner-than-expected “economic recovery” which could mean dangerously high inflation down the road if the Federal Reserve decides to increase interest rates before a true economic recovery is seen. This speculation has increased short-term safe haven demand as wise investors continue to invest in precious metals as their ultimate hedge from devaluing fiat currencies.

Gold Spot Price = $950.70 per ounce, increasing $13

Silver Spot Price = $13.64 per ounce, increasing $.23

Platinum Spot Price = $1183 per ounce, increasing the $11

Short-term market projections continue looking impressively bullish as market analysts from around the globe are updating their 2009 projections based on an array of negative economic data combined with speculation that inflation could drive spot prices significantly higher. Several market analysts have even said that gold in particular is poised to hit $1250 per ounce before the end of the year while silver could hit $18 per ounce if demand accelerates at a rapid pace. This being said, it’s very important that investors keep a very close on inflation and the United States Dollar Index because further signs of weakness with the fiat currency could cause a large-scale loss of confidence in dollar-backed assets, thus potentially creating a flock of wise Americans looking to invest in precious metals.

Daily Updates Archive

Danny Burns

Senior Staff Writer - Precious-Metal.org