October 1, 2009

October 1, 2009 – Gold and silver spot prices were mildly subdued on Thursday morning, as the Commerce Department released August’s consumer spending information. President Barack Obama’s "Cash-For-Clunkers" program boosted the bottom line substantially with its $1 billion payout, and a vacationing America increased total US consumer spending 1.3% in August. Non-stop government intervention into the financial markets was unable to prevent gold from posting an afternoon gain of about $4.20, and the allure of precious metals as an effective security hedge was the reason behind the afternoon spot price elevation. Gold and silver investments are becoming increasingly popular with the worsening economy, and our government’s failure to control the financial wildfire is generating increasing synergy within the commodities market.

Some investors are fed up with our government’s liberal spending policies, which have charitably given taxpayer-provided funds to troubled assets and industries. This is unacceptable to many Americans, who believe in fiscal responsibility and accountability. The United States has not felt the power behind those words since 1976, when then-President Richard Nixon removed the US from the Gold Standard. From that moment on, everything changed about the way the United States formed financial strategies. The Federal Reserve has been maniacally printing and spending seemingly limitless amounts of money, and the effects that this has on our economy is not lost on savvy investors.

Gold and silver are not negatively affected by the inflated dollar, or an unhealthy economy. Rather, they have historically maintained their value much more effectively than many traditional investments, when economic storms erupt. Gold is currently valued at $1004.10, and silver’s spot price on the New York Mercantile Exchange is $16.39. 

Shannon King

Senior Staff Writer –

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