Daily Precious Metal Update

April 20, 2009 - During the midday trading hours, the United States Dollar is continuing to strengthen while stock markets are falling more than expected and precious metal coins are increasing in value as a direct result of instability with other financial markets. Today’s safe haven demand has been sparked by the increasing dangers with any assets tied directly to the United States Dollar which is expected to contract in the near future because of our latest overprinting with the stimulus and bank bailout packages. Bargain hunters are beginning to purchase precious metal coins in large amounts at the moment because they fear that mainstream financial markets may collapse after there is no more money to pump into this economic system. Both inflationary and deflationary worries are the main drivers for increasing spot prices today, and this is why several market analysts and financial institutions are recommending a diversification in precious metal coins because historically they act adversely to problems that occur with fiat currency.

By around 4 PM Eastern Standard Time, it appears that the safe haven precious metals are increasing in value while the industrial metals are decreasing in value. Gold is currently trading in the area of $885.40 per ounce, moving up $16.70 for the trading day while silver is currently trading in the area of $12.09 per ounce, moving up $.20 for the trading day and platinum is currently trading in the area of $1159 per ounce, moving down $46 for the trading day as a result of weakening automobile demand.

Daily Updates Archive

Danny Burns

Senior Staff Writer – Precious-Metal.org