Precious metals losing value! Why?
why is it that gold, silver platinum have lost so much value in the past 2 months? shouldnt fears of global recession increase the value instead of decrease it, or has the appeal of precious metals as alternative assets become invalid??
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Firstly the rise in the dollar is responsible for a lot of the apparent decline in gold and other metals. Although the US economy is shaky, the US still has a very strong industrial, natural resources and food production base compared to almost any other economy.
Secondly.... a lot of the rise in precious metals was not due to accumulation as an inflation hedge or industrial demand, but just plain speculation. The speculators are running scared (as they should be) and are liquidating positions left and right. Stand bye for some real bargains in gold and other precious metals..... a real good time to buy zinc ..... but real estate and gold have another 30% decline to come .... at least.
Funny you say that. Multiple search engines tell of the inverse being true?
Gold is really silly. They dig it up, melt it, and put it back underground with guards around it. If that's not ironic, then it's moronic.
The spike was due to speculative forces,as commodities also plummeted, those who had taken positions on commodities are struggling to pay for the money they borrowed.