November 30, 2009 – Gold and silver spot prices retreated slightly this morning, but the pullback in the prices of these two metals was significantly less than what economists previously called for. By 3pm EST, the Commodities Exchange (COMEX) listed the gold spot price as $1177.20, and silver is trading at $18.38 on this same exchange.
Gold and silver have trounced other investments in recent years, largely due to the fact that the falling US dollar has minimized gains seen in stocks, bonds, and cash accounts. Gold has a strong history of moving inversely to the dollar, and silver has “ridden the coattails” of gold since 2004. While silver investors have seen some tidy profits in recent years, the white metal is somewhat more speculative than its’ yellow counterpart.
Investors have supplemented their current holdings of gold and silver because these metals are considered safe-haven assets during high inflationary times and when our economy falters. If the dollar collapses or simply continues to become devalued, gold and silver spot pries will likely continue to rise.
Historically this has been the case, as evidenced in the 1970s. Inflation reached double digits back then, and silver and gold shot to $55 and $850, respectively. Gold investors who entered the market at the beginning of the last cycle made over 1000% on their initial investment, and gold has only been rising for eight years in the current cycle.
If you believe that gold and silver spot prices could continue to rise and you want to make the best of this bad economy by holding precious metals, contact us directly through email or our toll-free number and we will send a copy of our 2010 Insider’s Guide To Gold And Silver Investing to your door.
Senior Staff Writer – GoldSilver.org