Daily Precious Metal News

3 February 2010 - With the unveiling of President Obama’s vision for expanding government spending, budgetary concerns have moved precious metals prices higher in February. After gains by the US dollar left precious metals spending much of December and January in the doldrums, Obama’s decision to substantially increase the US budget and government spending appears to have broken through the temporary gains made by the dollar, opening the door for metals to attempt a rally.

With only platinum making a gain for the month of January, precious metals posted gains on each of the first two days of February, with gold rising nearly $35 per ounce, silver increasing nearly sixty cents per ounce and platinum soaring nearly $70 per ounce. As news of the President’s agenda broke, the value of the dollar fell nearly a point on the US Dollar Index, signifying the most substantial drop the currency has experienced in over two months.

Limping along on a weak economy and unstable dollar, the United States is risking its financial future with this aggressive spending by the government, much to the chagrin of precious metal investors. Weak economic times have traditionally encouraged people to invest in precious metals, and today’s problems join with high metal demand to make a very appealing combination.

Investors can explore a number of options for creating successful holdings in precious metals. An investor might consider platinum or silver bullion held in combination with gold rare coins, taking advantage of the short term potential of the bullion and coupling it with the long term stability of the certified coins. As the US government chooses a risky path for economic recovery, investors can find excellent potential returns with gold, silver or platinum bullion and certified rare coins. 

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Danny Burns

Senior Staff Writer - Precious-Metal.org