Daily Precious Metal Update

July 31, 2009 - Precious metal spot prices are increasing once again today, set for a monthly rise as the United States Dollar continues falling after the latest economic data showing that our economy is still contracting despite the latest government comments saying that an “economic recovery” is underway. Many investors currently have their eyes on upcoming economic data that could prove that inflation is still growing rampant, and to make matters even worse, if the United States Federal Reserve increases interest rates before year’s end, we may see skyrocketing inflation which in turn could benefit precious metal spot prices as it has been seen in the past.

Gold Spot Price = $955.50 per ounce, increasing $21.80

Silver Spot Price = $13.93 per ounce, increasing $.46

Platinum Spot Price = $1205 per ounce, increasing $24

As you may already know, our latest Producer Price Index and Consumer Price Index data showed that inflation is growing at a much faster rate than market analysts expected, yet in reality we are only at the tip of the iceberg. According to the latest projections, inflation could become a severe problem in our economy, and this could spark a rally into safe haven assets like gold and silver, thus potentially spiking precious metal spot prices. Similar market movement was seen in the late 1970’s when both gold and silver increased in value more than 800% in just two years as inflation forced investors to flock way from dollar-backed assets in exchange for assets with true value.

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Danny Burns

Senior Staff Writer - Precious-Metal.org