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Lower Gold And Silver Prices

November 20, 2009 – Investors took advantage of lower gold and silver prices today that were caused by the US dollar’s strengthening against a basket of other major currencies. Although US economists still believe that the long-term future of the greenback is in question, short-term faith in the dollar surged today and repressed precious metal prices.

Gold is valued at $1033 per ounce on the Commodities Exchange (COMEX), and silver fell to $18.24 on the same index. Platinum is presently selling for $1430 per ounce, and this is a $14 decrease for the day. Precious metals and other commodities that are priced using the US dollar increase in value when the dollar is devalued, and also when demand exceeds supply.

Lower gold and silver prices were caused directly by the dollar’s devaluation today, and not by large-scale profit-taking by investors. Generally, investors prefer to maintain possession of physical metals when the US economy tanks.

Historically, gold and silver rose to record highs when other US markets were failing. In the 1930s and again in the 1970s, radically high national debt and an inflated dollar helped gold and silver prices rise steadily. Gold and silver have risen steadily for a few years, and our worsening recession could cause these precious metals to become even more available.

Gold and silver are considered safe-haven assets because they provide wealth preservation, and possibly growth, during the worst of financial seasons. Today’s lower gold and silver prices are an excellent way to save a few dollars if you have been considering a precious metal investment, so contact us online or call our toll-free number to take or strengthen your position in the precious metal market, and escape the volatile US dollar. 

Shannon King

Senior Staff Writer – GoldSilver.org

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