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September 21, 2009

September 21, 2009 – Gold and silver prices dropped slightly below opening values on Monday, as the US Dollar strengthened and overseas markets remained flat throughout the morning and afternoon trading sessions. Gold and silver have been a hot topic leading up to the next G20 Summit that is to be held in Pennsylvania.

The 20 leading and developing nations will convene in Pennsylvania to discuss a number of topics, ranging from the banking crisis to terrorism and global warming. However, investors are keenly interested in one topic that could show up on the docket: the US government confiscation of bullion as a means to back up the Dollar’s value. China, India, and other nations have called on the Dollar’s status as the world reserve currency to be reevaluated, due to the loss of value it has suffered because of overprinting. As Sara Murray with the Wall Street Journal points out, the Fed faces an upcoming test to see just how much inflation Americans are feeling right now. If the numbers show that inflation is worse than we already know it is, then gold and silver prices could spike accordingly, in both the confiscatible and non-confiscatible varieties. However, many wonder if President Obama would take gold away as President Roosevelt did in 1933, or if he would rather have US currency become insolvent.

Obama’s other options remain to be seen, but many economists assure investors that gold and silver confiscation could only occur if the Dollar loses spending power to the point that American and international buyers of the Dollar are prepared to drop US currency in favor of some other form of valued asset. To stay up-to-date on current precious metals issues and to track the live spot price of gold, silver, and platinum, visit www.goldprice.net. The current gold spot price is $1004.10, and silver is down $0.13 for the day and is currently valued at $16.85 per ounce.

Shannon King

Senior Staff Writer – GoldSilver.org

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