Daily Precious Metal Update

July 14, 2009 - Precious metal sellers from around the nation are seeing higher safe haven demand for gold, silver and platinum despite a stronger United States Dollar Index and higher stock indexes. According to several market analysts, today’s spike in safe haven demand is being predominantly driven by inflationary concerns after the latest economic data showed twice the predicted inflation with the Producer Price Index.

Gold Spot Price = $925.30 per ounce, increasing $4.50

Silver Spot Price = $12.87 per ounce, increasing $0.04

Platinum Spot Price = $1129 per ounce, increasing $16

June’s Producer Price Index rose 1.8% after market analysts had predicted .9%. Since the beginning of the year, economic data has proven that inflation is slowly but surely growing in our economy, and even the Federal Reserve themselves mentioned that they expect higher inflation if the economy recovers. A high inflationary economic environment is very dangerous for dollar-backed assets such as stocks and bonds, thus these dangerous long-term expectations are causing many wise investors to flock to reputable precious metal sellers in order to begin diversifying with safe haven assets that have proven their preservation potential during similar times. The last time that the United States underwent a dangerous high inflationary cycle was between the years of 1978 and 1980 when the Federal Reserve increased interest rates before they were supposed to, thus driving gold and silver spot prices up more than 800% in just two years. Short-term market forecasts are expecting precious metal sellers to continue seeing high demand as more and more investors begin learning about the true potential of safe haven metals during turbulent economic times.

Daily Updates Archive

Danny Burns

Senior Staff Writer - Precious-Metal.org