September 22, 2009 – Gold and silver are both up more than 1.8% during Tuesday morning trading, with a recent Reuters.com article possibly to "blame." The Steve James article points out that while most of the US economy is struggling, certain markets that historically thrive during tough fiscal times are out there. Dennis Wheeler, the head of Coeur d’Alene Mines, told a group gathered at the Denver Gold Forum that a "new golden age" could exist for those who are involved with precious metals like gold and silver, and that deficits in the stockpiles of certain metals could push up spot prices significantly before the year’s end. It comes as no suprise to many investors that gold and silver are both up quite a bit for the year.
The trends in gold and silver dictate that the metals lose value when a nation’s economy is strong, because it costs less of the currency to buy the metal. When the economy tanks, the currency drops, and other markets fail, gold and silver could show positive movement. The latest upswings in gold have been attributed, at least in part, to more bad news for the housing and mortgage sectors, which has suffered major losses over the last few quarters. Peter Zalewski of Condo Vultures in Florida fears that current real estate investors who can afford to hold may be stuck with those properties for a long time. "The reality is, they will be riding out these units for quite some time," the real estate consultant warned. Gold is not the only metal affected by economic crises. Silver could possibly rise as well due to the safe haven status it holds, not to mention the uses silver has in medicine, water purification, and appliances, which could be in high demand because of the government’s recently enacted appliance replacement program.
Gold and silver bullion information can be obtained at www.gold-bullion.org. The gold spot price is at $1016.50 on Tuesday morning, and silver is at $17.18. Both metals are up for the trading day, with gold showing a 1.25% increase and silver producing 1.8% of profit so far on Tuesday.
Senior Staff Writer – GoldSilver.org