Ongoing concerns over stalled U.S. debt ceiling talks, as well as fears of debt contagion in Europe have fueled the rapid increases in Gold and Silver with investors seeking a safe haven in precious metals. Forex.com Analyst Kathleen Brooks noted, “Recently, Gold has outpaced Silver; however, with Gold reaching a record … we think that Silver may play catch up.” Gold’s appeal as a safe haven and hedge against inflation are shining through in this time of global economic uncertainty. In addition, analysts suspect the price of Silver to continue its rise as investors seek an alternative to Gold and as demand from emerging markets begins to outpace the world’s limited Silver supplies.
The prices of Gold and Silver may only continue to rise if:
- there is a continued lack of progress on the U.S. debt ceiling talks with an August 2 deadline looming,
- European Union leaders seek solutions to bail out Greece again while trying to stop the crisis from hitting Spain or Italy, and
- investors worry about rising U.S. inflation with a possible third round of quantitative easing, known as QE3.
If you have been waiting to make your investment, don’t put it off any longer! CitiFX’s Chief Technical Strategist, Tom Fitzpatrick, said the next Gold rally should be similar to the July through December 2010 rally. Some experts say the technical charts for Gold based on past rallies see the precious metal reaching $1,750 an ounce or higher.
Recently, investors have been particularly interested in the following precious metal investments.
|1 oz. 2011 Gold American Eagles
Since the Gold American Eagle was introduced in 1986, it has been in high demand. Its stately appearance and proud symbolism make the Gold American Eagle one of the world’s most popular forms of personal Gold ownership.
|1 oz. Buffalo Silver Rounds
This .999 fine Silver bullion coin is a beautiful example of James Earl Fraser’s classic Buffalo design. Investors and collectors alike treasure this popular and easy to store coin.
Strike while the market is hot and take advantage of growing investment opportunities.
Don’t miss your chance to lock in your Gold and Silver position. Concerns over QE3, the ongoing European debt crisis and the looming U.S. debt ceiling may cause prices to increase even more.