Gold Downturn – Will the metal recover?
Precious metals prices have slumped to a nearly one-year low as of Wednesday morning with gold trading at around $1,227 and silver at $15.56 at the time of writing. The slumping precious metals market is looking for a rally. Yesterday, the Federal Reserve Chairman, Jerome Powell, was on Capitol Hill where he appeared before the House Financial Services Committee and spoke about the state of the US economy. His positive outlook helped to boost the major US stock indexes. Although stocks are up, the lower prices of gold and silver, as well as other commodities, continue to worry some investors.
Are we on the verge of another correction in the gold price? As we appear to be on track for a fourth straight losing session, gold appears to be on the brink of its correction territory. These losses are in stark contrast as the US dollar continues on a strengthening trend which fits the old paradigm that when the dollar goes up, gold goes down. On the year, gold has tumbled about $140 per ounce.
Market sentiment shows more bears than bulls. Who is going to make the first move? One can only make a definitive assertion about price action from a macro perspective. Are we in a valley or will gold continue to drop off a cliff before recovering sometime in the future? It’s worth noting that during times when the actions of geopolitical entities create greater waves in the markets, precious metals continue to be the safest form of investment.
Lowest Premium Prices!
In the physical precious metals world, as the spot price of the precious metal goes down, the premiums tend to go up as people take advantage of the lower prices. The premium can also be reflected by the amount of product a dealer may have.
During this period, when premiums have crept higher, the time to invest in precious metals is now! Generic and junk silver products can help you save money by avoiding increased premiums on newer silver products and enable you to take advantage of lower precious metal premiums. Premiums have not had time to increase as much during this relatively quick precious metals price drop and the window for getting precious metals at the cheapest prices is quickly closing.
Bullion Exchanges has noticed that many dealers have increased their premiums across the broad spectrum of products, however, there is still time to take advantage of last week’s prices! Bullion Exchanges is keeping our premiums low so that you can lock in your price before it goes up. Right now, we’re featuring special pricing on our Gold Krugerrands, Gold American Eagles, and Gold Francs!
Bullion Exchanges is located at 30 West 47th Street in New York City’s Diamond District and is open Monday through Friday 9 A.M. to 5 P.M., by phone at 800.852.6884, or online anytime at BullionExchanges.com. Our friendly team can address your Precious Metals investing questions and can help you with any bullion purchasing or selling requests.
All market review articles are provided as a third party analysis and do not represent the views of Bullion Exchanges and should not be considered as financial advice in any way.