Daily Precious Metal Update

May 7, 2009 - Precious metal spot prices have been on an ongoing rally since the beginning of the month based on several external economic factors that are driving investors away from mainstream financial markets and into more historically preservative assets. The two safe haven metals, gold and silver have been doing impressively well since the beginning of the month because investors are purchasing them in large quantities in order to protect themselves from dangerous inflationary pressures that may arise down the road. Precious metal spot prices are also benefiting from the negative sentiment about the government bank stress tests saying that several banks will need billions of dollars in order to withstand a deeper recessionary cycle. Today is the official release date of these stress tests, and any type of negativity could create short-term fears that may drive investors to withdrawal all of their cash from checking and savings accounts, similar to what occurred before one of the most frightening economic collapses, also known as the Great Depression.

By around 3 PM Eastern Standard Time, precious metal spot prices are once again increasing in value across the board, and gold is currently trading at $911.90 per ounce, up $.90 for the day while silver is currently trading at $30.87 per ounce, up $.14 for the day and platinum is currently trading at $1146 per ounce, up $11 for the day. Market analysts are expecting further economic data to continue driving spot prices in the short term, so keep a close eye on anything that may create sparks of safe haven demand.

Daily Updates Archive

Danny Burns

Senior Staff Writer – Precious-Metal.org