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

Silver has seemingly played second fiddle to gold in the media recently, and a lot of this is probably due to the gold spot price’s rally from $1000, to…$1050…$1071…$1089…and a peak of $1099 so far today. Financial planners for JP Morgan have previously stated their expectations of an $1100 gold spot price before January, but the International Monetary Fund’s (IMF) recent sale of 200 tons of gold has hastened gold’s climb to the brink of $1100 per ounce. Not to be entirely outdone, silver prices have risen impressively this week, and Bank of America officials have made known their belief that silver’s per ounce value could reach or exceed $20 per ounce in 2010.

Silver prices have started to climb as well, but their escalation cannot reasonably be termed “piggybacking.” Although silver is somewhat more speculative than gold right now, it still holds significant value as a safe-haven asset. By owning physical gold and/or silver, and storing it privately, you provide yourself with a viable back-up plan in case our nation’s economic woes continue.

Many economists called for silver prices to fall after the spot price rallied to $18 last month. Some profit-taking was seen, but silver’s spot value was as high as $17.49 today. Silver has increased by 5.3% this week, and gold has rendered 3.8% gains in the same time period. Economists believe that good things are in store for gold and silver investors throughout the current cycle, so contact www.GoldSilver.org for valuable information on investment-grade precious metals.

Shawn Cunningham