Latest news on precious metals
January, 2013 – Gold and silver prices are now consolidating at the thirty dollar level. During the vacation week bullion price charts saw a drop and some short covering of silver futures by large commercial trading firms who were short silver futures contracts.
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Many people today are concerned about the economy and more specifically the dollar value. Experts such as Max Keiser believe that the dollar is in trouble and that purchasing silver and gold bullion is an excellent way to protect ones savings from a dollar crisis.
If we look back in history we will see that the value of paper currency never lasts more then 60 or 70 years. All paper currencies finally meet their demise. This is due to economic principles that the more money you put into circulation, the less value your money is worth. For instance, in the early 1900′s you could have purchased a nice suit and tie for about twenty dollars. Today, that same suit and tie would cost you a couple thousand dollars. If you kept your money in gold then your $20 in gold would be worth $1700 today, and you could still buy that nice suit. But if you kept your money in paper, that twenty dollars could only buy you some socks.
Many financial experts believe that we are seeing the end to the dollar as we know it. These experts believe that due to the constant money printing, our dollar will eventually collapse, and then be replaced with a new dollar. The new dollar will not have the value of the old dollar since the U.S. will more then likely not be the world’s reserve currency anymore. Therefore, these experts recommend placing money in gold and silver bullion. There are many reasons why the gold price for bullion as well as silver prices could surge over the coming five to eight years.
There are many reason why silver prices and gold price charts are expected to rise. Here are some of the reasons:
1. The dollar is being devalued by the current money printing by the Federal Reserve. The more money you print, the less the currency is worth.
2. European countries are stocking up on gold bullion and are moving away from buying U.S. treasuries.
3. Silver supplies are dwindling.
4. Silver is the highest conductor of electricity and is utilized for many commercial purposes such as solar panels, computers, cell phones and other appliances.
5. Foreign countries, including Brazil, China, India and Spain are making plans to trade oil without the U.S. currency. We have maintained a lifestyle in the U.S. because we have been the world’s reserve currency and if we are no longer the worlds trading currency the demand for the dollar will drop.