September 16, 2009

September 16, 2009 – US households are struggling to make ends meet, says a new report from Shadow Government Statistics media group. The decrease in income and subsequent spending crunch has hurt many major financial markets, while commodities like gold and silver have been trending upwards. Precious metals, including gold and silver, historically rise when American households feel the effects of worldwide economic pressures.

In previous years, consumers were encouraged to increase spending in order to keep the economy afloat. Now that the gravy train has left the station for many Americans with falling incomes, the spending is slowing and retailers around the United States are hoping for a green Christmas, although many economists believe it could be an extremely slow holiday season, leaving the possibility for a gold and silver Christmas. Americans are spending more on essentials, while non-essential spending is down 6.2% in the last quarter. Instead of purchasing the newest electronics at Best Buy, many individuals and large financial institutions are purchasing gold and silver, which are projected by analysts to outpace historical growth during similar periods within previous cycles. The benefit of owning precious metals is that they are a hard asset that have always held value historically.

Gold and silver are both making historic moves today, as gold approaches the $1020 mark and silver has crossed the $17.30 plateau. Before last wek, gold had overcome the $1000 mark only five times in history. Since gold hit a 25-year low of $252 in 2001, analysts like Walter Murphy with Merrill Lynch have been calling for a rise in gold, and investors believe that the commodities part of the cycle has only just begun.

Shannon King

Senior Staff Writer –

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