Reduced Precious Metal Prices

Reduced precious metal prices have been the topic of conversation for many investors as they try to determine the direction prices are going to take for gold, platinum, silver and other commodities. For traders, the current price changes offer an excellent example of how it is necessary to understand market movement and what some analysts expect to happen in the days ahead.

The general consensus among economists is that market still supports the price of precious metals. High demand has coupled with a continued weak dollar and stagnant supply to keep gold, platinum and palladium price high. With its price support, many are viewing the recent gold price drop of $50 per ounce in the third week of January as a cyclic event much like the correction occurred in June 2009. After reaching its high of nearly $1,000 at the time, the price corrected to almost $900, then began a six-month climb that lead it over $1,200 per ounce.

Some analysts also see the prices of platinum and silver as part of a cycle. Platinum prices have recently been around $1,550 per ounce and silver around $19.00; both have experienced some recent volatility as profit takers get out, but the trend for both seems to still be moving upward.

For investors who are ready to get in, now appears to be an excellent time. Gold is $125 an ounce below its all-time high from December and appears capable of moving again, as do silver, platinum and other metals. The uncertain economic indicators of today make the stability of investing look very appealing, especially in the light of reduced precious metal prices.

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Danny Burns

Senior Staff Writer - Precious-Metal.org