Archive for the 'Silver Prices' Category

Do you want to buy gold for under $300 and ounce, US dollars. How does $252.00 per ounce sound. Pretty good right.

Well if you were to adjust the recent prices in Gold and Silver for inflation you’d see that the 24 year highs that we are seeing aren’t really that high at all. Back in the late 70’s and early 80’s gold reached record highs that might have been a bit overpriced for the times but in today’s dollars would have been a bargain. If you adjust for inflation, at today’s prices of around $600 an ounce would mean that adjusted for inflation that same $600 would buy about $280-$300 an ounce.

If you look at the graph below the price of Gold adjusted for inflation has been in a steady decline (obviously so from the past 20 years), then with the recent climb over the last 7 years we really haven’t seen close to the overpriced market that we saw in the early 80’s. Gold and silver alike have a long way to climb to even come close previous record highs.

Source: How to buy Gold for $252.00 per ounce!

 

technorati tags:Silver, Price, Inflation, buy, gold

Precious metals retreated over the last 24 hours amid worries of a falling dollar, speculation that the fed will most certainly raise interest rates, and shaky news from the middle east.

Even though the dollar is lowering the feds news that interest rates are going to be rising again put a stop to any short lived rebound that was seen in both Gold and Silver as of this week. The rising interest rates are in hopes to curb inflation that has been running rampid over the past few quarters.

The Fed’s news also comes at a time when global central banks are said to also be looking into raising key interest rates to reduce inflation and also the skyrocketing commodities prices that the world has seen over the last half year. This would mean lower prices for commodities and hurt some of the newer funds that started this year to cash in on the precious metals climb. Most notably, iShares Silver Trust (SLV:AMEX) and StreetTracks Gold Trust (GLD:NYSE) which lost 2.43 and 0.60 respectively in the days trading.

Other notables being hit today on the uncertain economic outlook and threats of interest rate hikes was Market Vectors Gold miners ETF (GDX: AMEX) and Glamis Gold Ltd (GLG:NYSE). GLG however was big news Wednesday when it announced it was doubling gold reserves and the price jumped from 31 to 34 in early morning trading.

Other news to watch out for as the precious metals market continues to rock back and forth is the possible nuclear missile testing being done by North Korea and the continued enriching of uranium by Iran. Both of these tense topics may keep precious metals at the highs we are seeing and if even a few of the worlds banks decide to forgo any interest rate hikes silver and gold could come charging back towards the end of the year.

Is silver making a move back up the ladder it jumped off of late last month?

The dollar lowered, the stock market is rebounding, and Iran is still enriching uranium. Aside from the stock market rebounding the other two indicators, although might be downers for some, for precious metals like silver they’re great indicators for a possible boost in silver and gold prices.

Precious metals tend to follow the value of the dollar and troubled times. As the dollar goes down people want to put their money in a safer place such as metals that have always held value as a medium of exchange. Also in troubled times people want safety and safety is found in precious metals like silver.

Three days straight both gold and silver have edged further ahead and look to have started off London trading ahead of yesterday.

Silver followed the markets of the world as it and other precious metals rebounded from near 3 month lows in early trading.

Silver spot prices bounced back above $10 an ounce and gold gained $13 after suffering its biggest loss of the year. This is coming after the dollar shows signs of getting weaker and tension in the middle east heats up. Stocks are rebounding as well after multiple losing weeks.