Sunday, February 22, 2009

Gold is spiking in price

Gold has suffered a surprising upward trend, almost 80 dollars in a single week.

Normally Central Banks then sell gold to depress the price, however in this case, a rising gold price means the Central Banks now have more assets on hand and that helps to keep them solvent.

Silver, or poor man's gold, has also seen a upward trend, however not as large percentage wise as Gold has, there is perhaps still some room to purchase Silver in expectation of a rising price and a profit, however Silver is purely an investment as no Central Bank holds silver reserves.

Buyer beware on silver purchases for anything other then a small fast profit or as a minor hedge against inflationary presssures.

There will be no Hunt Brothers this time out, and the commodity bubble bursting effected silver.

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