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Gold and silver prices are heading towards their second week down in price after news out of Europe has continued to hammer markets.

November 24, 2011 – Gold and silver prices are heading towards their second week down in price after news out of Europe has continued to hammer markets. The Dow and other major markets ended Wednesday further down, extending serious losses that began last week. Today, markets are closed in the United States in observance of Thanksgiving but world markets are either flat or showing a very slight improvement.

Many questions arise as to why the gold market, as has generally been true in the past, has not reacted suddenly and strongly to the dramatic fall in stocks. While gold and silver prices have many contributing factors, some of which involve considerable time compared to stocks, usually large drops in the Dow and other major markets register timely gains in gold and silver.

One must keep in mind, however, that the currently losses in the markets stem from a sovereign debt crisis in Europe. While we have experienced the bankruptcy of MF Global, it is generally true that the European crisis has not landed on US shores in its full form yet. Therefore, other markets are reacting the in the ways they know best. Currency traders are very closely monitoring the situation and attempting to profit off it by playing the euro versus the dollar.

Though this is essentially like playing a zombie against a vampire to see who falls first, it is nonetheless temporarily providing strength to the US dollar. This is suppressing the price of gold because it requires fewer dollars to purchase the same amount of gold. This would be the classical definition of a buying opportunity and it generally is a very good buying opportunity now.

There’s a slight lull in the news out of Europe and certainly the holiday in the US has put things on hold for a bit so prices will probably stabilize at least through the weekend. Picking up a few extra ounces right now, or taking advantage of the gold and silver prices available right now, is an especially good idea. Your friends and family, with whom you share a wonderful Thanksgiving, probably won’t appreciate a plasma screen bought tomorrow that is worth nothing in a year. They will appreciate your taking the opportunity in gold and silver prices to buy now.

Shannon King

Senior Staff Writer – GoldSilver.org

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