May 19, 2009 – Gold and silver bar prices are rebounding today on the COMEX division of the New York Mercantile Exchange based on higher American safe haven demand as the financial crisis appears worse than we had expected simply by looking at the latest economic data. Currently, United States housing starts are at record lows, and this is increasing speculation that a real estate rebound is not occurring. In other news, the United States Dollar is currently losing value versus the Euro after Goldman Sachs Group, J.P. Morgan Chase & Co. and Morgan Stanley are seeking to repay about $45 billion in bank bailout cash. Gold and silver bar prices have benefited from the latest negative economic data because historically, wise investors flock to both safe haven metals when they fear problems with the dollar or mainstream investment markets like stocks and bonds. This being said, we could see even higher prices down the road if the financial crisis gets worse and mainstream investment markets continue to tumble.
By around 3 PM Eastern Standard Time, it appears like gold and silver bar prices are both headed in the upward direction as safe haven demand has increased considerably today based on inflationary fears and speculation that the financial crisis will only get worse in the short-term, and this has pushed the gold spot price up to $927.70 per ounce, increasing $10.30 for the trading day while the silver spot price is up to $14.23 per ounce, increasing $.47 for the trading day.
Shannon King
Senior Staff Writer – GoldSilver.org
Connect With Us