October 2, 2009

October 2, 2009 – Precious metal prices escalated quickly at the open of trading on Friday morning, before profit-taking brought gold and silver spot prices close to the day’s opening levels. Despite stock returns in the automotive and tech sectors that have been exceptional over the last quarter, gold and silver continue to rise in value. Their proven worth as a safe-haven asset is crucial to many investors who are concerned about the safety of their money, so some decide to hedge their portfolios with gold and silver.

The three largest securities markets in the United States have performed quite well for investors during the last three months, but analysts of the Dow Jones Industrial Average(DJIA), the Nasdaq, and the S&P 500 believe that these indexes could be poised for a rather large-scale pullback. This summer, car dealers around the nation hosted our government’s "Cash For Clunkers" project, and the Obama administration’s stimulus package also allowed for an $8000 rebate for new home buyers. The coming months will reveal the bolstering prop that these programs have given to stocks, as President Barack Obama’s remaining bailout funds are spent, or squandered. Investors are searching for reliable investment vehicles, and Brian Foster, private banker at JP Morgan, has some insightful ideas. Foster has been named the best private banker in the United States by Barron’s Online. Many of Foster’s clients are concerned about the unfolding and largely unforseen economic events that are taking place within our nation. "It’s brought forth in nearly everybody’s mind the realization that the risk in their portfolios was greater than they had expected," he said. In January, Foster and his team asked clients to invest in oil, which was then at $40 per barrel. A barrel of sweet crude is now valued at $71, and Foster is already eyeing the next move. He projects that commodities and real assets could be superstars until our economy gets back on track, and the liquidity of commodities like gold and silver is widely appreciated.

Gold is up 0.38% for the trading day, and is now valued at $1004. Silver is currently selling for $16.10 per Commodities Exchange(COMEX) ounce. Investors who are new to precious metal trading are invited to, where a vast library of interesting information has been archived for easy access and use.  

Shannon King

Senior Staff Writer –

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