Daily Precious Metal Update

August 13, 2009 - Precious metals have a tendency to thrive during unstable economic times, thus it’s no surprise that many wise American investors continue turning to physical possession bars and coins in order to potentially protect themselves amidst the worst financial crisis we have seen since the Great Depression. Typically, these wise investors turn to safe haven precious metals, like gold and silver in particular that are commonly seen as assets that hold true value, as opposed to fiat currencies that hold no true value whatsoever. Today’s spot prices continue to rise as safe haven demand shines in investment markets worldwide.

Gold Spot Price = $956.40 per ounce, increasing $9.20

Silver Spot Price = $15.02 per ounce, increasing $.49

Platinum Spot Price = $1267 per ounce, increasing $28

One of the primary reasons why safe haven demand is on the rise is because the United States Federal Reserve has just mentioned that they will not increase interest rates for an “extended period” of time. As you may already know, higher interest rates could spark dangerous inflation as they have done in the past, yet interest rates kept at current levels could mean that the inflation down the road may be a lot worse than expected. Fortunately, precious metals have proven their ability to thrive during inflationary and deflationary economic environments. The last time that the United States economy underwent a similar scenario was in the late 1970’s when precious metals increased in value more than 700% as a result of high safe haven demand that was led by increasing interest rates during an inflationary period.

Daily Updates Archive

Danny Burns

Senior Staff Writer - Precious-Metal.org