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July 22, 2009 – Wise investors typically buy gold and silver as a safe haven hedge from the uncertainties with dollar-backed assets, and this is exactly what we’re seeing today as more and more Americans are turning to precious metals as their ultimate shelter from the current financial storm. The future of investing markets looks very uncertain, especially since the United States Federal Reserve is expecting an “economic recovery,” when in reality inflation could begin to grow at a dangerous rate once they increase interest rates like they plan to do by the end of the year. The current gold spot price is sitting at $951 per ounce while the current silver spot price is sitting at $13.67 per ounce, both up for the trading day.

According to several market analysts, more investors are deciding to buy gold at the moment based on two primary drivers. The first one is the weakening United States Dollar that has been facing unstable fluctuation since the beginning of this economic recession, and the second one is the massive injections of liquidity by central banks in order to prevent a complete economic collapse. These two primary drivers are leading the way for higher spot prices as wise investors are beginning to stray away from dollar-backed assets like the plague. Fortunately, if the United States Dollar continues to lose value and inflation grows down the road, the investors who buy gold and silver as of now may benefit from skyrocketing spot prices that is only bound to happen if all confidence is lost with the world’s primary reserve currency.

Shannon King

Senior Staff Writer – GoldSilver.org

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