Daily Precious Metal Update

July 22, 2009 - Investment demand for precious metal gold, silver and platinum is on the rise today as the United States Dollar Index slips based on growing speculation that the fiat currency could experience dangerous inflation down the road. This speculation comes after Federal Reserve Chairman Ben S. Bernanke mentioned that inflation pressures are limited, and this basically means that they will not increase interest rates yet until they feel that a true economic recovery has begun. This being said, when they do increase interest rates, we may see precious metal gold, silver and platinum extending their gains and possibly even reaching new highs as wise investors flock away from devaluing dollar-backed assets.

Gold Spot Price = $950.40 per ounce, increasing $1.40

Silver Spot Price = $13.67 per ounce, increasing $.14

Platinum Spot Price = $1171 per ounce, increasing $1.00

According to several market analysts, the overall outlook for precious metal gold, silver and platinum looks bullish in the long run because there is still a lot of uncertainty about the dangers that fiat currencies could face down the road as a result of our massive liquidity injections. Historically, when governments inject large amounts of fiat currency into their economies, inflation is a result, and this is what many investors and market analysts fear at the moment because it could be devastating for mainstream investing markets. Fortunately, precious metal gold and silver in particular have proven their ability to thrive during both inflationary and deflationary economic environments.

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Danny Burns

Senior Staff Writer - Precious-Metal.org