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Precious Metal Prices Dip

Precious Metal Prices Dip

The DOW didn’t start the week with a bang, but it picked up speed as the day went on. The DOW finished up today 109 points from it’s Friday close. Late in the day it was up over 150 points. The S&P 500 finished up 11 points which means the two indices are up today by nine tenths of a percent. The best of the big indices is the NASDAQ, finishing up 35 point (1.33%). The rally in the markets today was due to Europe’s announcement of optimistic look on Greece’s debt. Even though the gain was welcomed by many on Wall Street, the strength of the markets may only be temporary. Yes the dollar has gained strength, but lost some steam with the dollar index closing at $75.33 today. The Euro gained 0.6% against the dollar. If the Federal Reserve keeps printing money, it will lose even more of what it recently gained.

In the commodity sector, precious metal prices fall. Gold dips below the $1500 level, settling at $1496.40 per oz. and the price of silver also slipped back a bit to close at $33.59. It seems that many countries are lowering their concerns about inflation. The Chinese Premier Wen said the country’s inflation would be below 5%. With views like that, many see the haven of precious metal not being as needed or attractive as it is during poor economic times. At the current levels of gold and silver, they are both at their resistance levels. The 200 day moving average for gold is at $1415, which can signal a more downward slide in the commodity. So this is a good time to watch to see if the support level will hold. Analysts feel that this will all depend on what happens in Greece. Greece needs to prove that they are serious about their debt and how they get it in order. It’s the only way they will be able to receive any more bailouts from the IMF. If the latest measure fails and Greece can not get any more funds, then gold will continue to rise as more Europeans seek out to purchase more of the precious metal. If it goes the other way, where Greece does get the bailout, then stock markets around the globe should see a rise in trading.

Either way you look at it, precious metals, over the long haul will increase in value. I’ve been building a portfolio which holds 35% in precious metals. I do plan to scale out of it, but my opinion is that we’re not done with the economic woes. Politics have a lot to do with the news we’re hearing and I don’t have too much confidence in any government.

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8 Responses to “Precious Metal Prices Dip”

  1. Jeanette says:

    All I knew about gold prices was that my gold and pearl ring and earrings purchased four years ago cost twice as much in Vegas today.

    Thanks for the education!
    Jeanette recently posted..How to Get Me to Follow You on Twitter in 3 Easy StepsMy Profile

  2. Learned something new!
    Stacey Soleil recently posted..Yoko Ono Surprise at Hollywood BowlMy Profile

  3. What are your thoughts on investing in precious metals outside of gold as for many they may find the price for entry expensive? Should people work with a precious metals broker and purchase actual coin or bullion and hold it in a safe deposit box for the future OR invest in stocks or funds that highly invest in precious metals (If yes, what funds might you suggest?) Thanks in advance, lisa

  4. billy
    Twitter: billyakerman
    says:

    You’re welcome. Hold on to any jewelery for now since (I feel) gold will continue to rise.

  5. Sean Slingluff says:

    Some very nice information in this article regarding property I`ll certainly be coming back to look at the site for further up-dates

  6. Genuinely challenging cheers, I do believe your trusty subscribers would likely want considerably more well written articles such as this keep up the great hard work.

  7. Jeannie says:

    sure hope you can help, you have a great site.
    Been trying to find who will send an email to me (maybe free subscription) when prices on metals go up or down.

    Thanks so very much!~!

  8. billy
    Twitter: billyakerman
    says:

    Jeannie, thank you for your compliment as well as your question. Here is a link to a investment company that will take care of your needs for you. Become a member and get everything you’ll need for your commodity investments.

    http://beginnerinvestingguide.com/investing-in-silver/

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