Gold And Silver Prices
A great many precious metals investors are wondering if maintaining low interest rates will negatively affect gold and silver prices. This is a valid question, although it may not be necessary to ponder much longer. It’s true that gold and silver prices have declined recently, but all eyes and ears will be on Capitol Hill this Thursday, as the Federal Reserve Chairman, Ben Bernanke is scheduled to testify before Congress on the Reserve’s monetary policies and practices
Since interest rates have been held so close to zero for so long, many believe that it’s impossible to repress them for much longer. Rising interest rates generally threaten dollar values, which have been struggling for supremacy over the euro. Gold and silver prices historically move oppositely to dollar values, as declining dollars primarily propel gold prices, and demand for silver increases, as precious metals investors diversify their holdings.
There also exists a surplus of 191.3 tonnes of gold bullion that the IMF is looking to unload. This apparent surplus of bullion could be creating the appearance that global demand for gold is down, when in truth, the Reserve Bank of India is presumed to be looking to purchase the bullion, although no Reserve officials would go on record as saying so. India has no domestic gold producers of her own, so it’s likely that the RBI is closely monitoring economic conditions to capitalize on the best IMF bullion buy available.
Those with questions over gold and silver prices are encouraged to contact one of our friendly precious metals specialist, who offer institutional discounts on gold and silver bullion, and rare coin to household investors like you.
Shannon King
