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The decision by the European Central Bank to trim its interest rate by a quarter percent today has created a great opening for gold and silver IRAs.

December 9, 2011 – The decision by the European Central Bank to trim its interest rate by a quarter percent today has created a great opening for gold and silver IRAs. Not every American knows that gold and silver IRAs are accessible investment accounts that function with all the benefits of a traditional IRA and the added advantage of allowing you to be invested in the best store of wealth history has to offer.

In a bid to do something about the European sovereign debt crisis, a summit in Brussels has led to a key rate cut at the ECB. They have also made it much easier for banks to borrow from each other, signaling that extensive measures are being taken to deal with the European debt problem.

Temporarily, this has provided for a drop in the prices of gold and silver. Gold drifted about $30 and silver a little over $1 following the announcement of the ECB. Keeping in mind that this summer we saw the price of gold over $1,900 and the price of silver around $50, the current prices at $1,730 and $31 are appealing levels for entry.

Eventually the debt problems in Europe will force the prices of gold and silver to rise again and to rise dramatically. The selling on the news of any potential rearrangement of the Europe problem is to be expected. However, barring further news or other factors, the European sell-off should be brief.

This makes quite an opportunity for investing in gold and silver. Central banks, it was reported recently, began buying gold at forty-year highs following the drop in prices from above $1,900. During the third quarter of this year, central banks, probably including the European Central Bank, were net-buyers of gold, demonstrating there is more to come from the precious metals.

Further, major banks such as Goldman Sachs, Credit Suisse, and Societe Generale have been circulating recommendations for gold to their clientele, citing the persistent low interest rates in the US as indicators that gold will perform well through 2012. If the US interest rate is any indication for these banking institutions, the European interest rate cut will also signal good times for gold.

Shannon King

Senior Staff Writer – GoldSilver.org

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