May 6, 2009 – Gold and silver spot prices are showing some significant gains today as economic fears are growing in the United States based on inflationary pressures that the dollar may face in the near future. Inflationary fears have been one of the main drivers of gold and silver spot prices in the past few years because many investors feel that the United States Dollar will become devalued after years of relentless lending. Historically, when fiat currencies become devalued, both gold and silver have increased in value because investors seek them as the ultimate stores of wealth. Similar movement is occurring nowadays, and since 2001, investors have been flocking into the market in order to preserve their hard-earned wealth that has been withering away in stocks, bonds and real estate. Many market analysts believe that we are currently in the middle of a safe haven precious metals cycle, and this basically means that there could be much growth ahead as the financial crisis worsens and the United States Dollar faces more severe problems.
By around 3 PM Eastern Standard Time, both gold and silver spot prices are showing impressive gains for the session and it appears like a small rally is occurring in the United States at the moment. The gold spot price currently sits at $910.60 per ounce, increasing $14.70 for the trading day while the silver spot price currently sits at $13.73 per ounce, increasing $.41 for the trading day. Short-term projections for spot prices are looking bullish, especially since the upcoming economic data from the United States Government could show the beginning of a long inflationary cycle.
Senior Staff Writer – GoldSilver.org