Daily Precious Metal Update

July 29, 2009 - Precious metal pricing is further extending its losses today as investors are re-entering riskier investing market after the United States Dollar extended its gains based on growing speculation that an “economic recovery” may occur by next year. The United States Dollar has just recently recovered from its lowest level of the year after government officials mentioned that “stability” in our economy is soon to come. Unfortunately, these government officials didn’t remind investors that inflation is growing in our economy at a dangerous rate. Luckily, precious metal pricing has proven its ability to thrive during inflationary economic environments, and even today’s spot prices are holding on quite well despite optimism about a recovery:

Gold Spot Price = $928.30 per ounce, decreasing $8.70

Silver Spot Price = $13.25 per ounce, decreasing $.46

Platinum Spot Price = $1171 per ounce, decreasing $22

Just two months ago, the United States Government mentioned that inflation would be a necessary factor throughout an economic recovery, yet many investors do not truly understand what this could mean for the dollar and investing markets. The last time that the United States economy saw a high-inflationary cycle was in the late 1970’s, especially during 1978 and 1980 when precious metal pricing increased more than 800% as a result of large-scale shifts into safe haven metals due to significant weakness with any asset that was tied directly to the inflating dollar. Do you think that this could happen once again in our current floundering economy?

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Danny Burns

Senior Staff Writer - Precious-Metal.org