Archive for the ‘Precious Metals’ tag

A Look At Precious Metals

Since their discovery, metals have always been known for their hardness. This dates back to the age of iron. They are also very easy to shape into various objects once heated up. Though, metals are not without flaws as prolonged exposure to openair causes many metals to rust. However, not all metals rust. Some of the metals that don’t rust are Gold, Platinum and Silver. Unfortunately, these metals are not as common as Iron or some of the other more widely spread metals. The availability these three metals are a major reason as to why they are considered precious metals. And out of all the precious metals the most desired is gold because it can be used for many different functions. Gold has always been cherished for its spectacular exquisiteness and because of this is often used as jewelry. Though, today gold is used in a plethora of different items. The automobile industry uses gold in some applications; it’s used in photography and electronics; and the medical industry uses gold for a variety of different reasons.

In the commercial market gold is usually not used in its purest form as pure gold is to soft for many applications. In these cases gold is combined with alloy or copper.

There have been many scientists that have tried to duplicate gold in their laboratories, but with no avail. The secret of gold, remains a mystery.

Gold Coins Are Selling Like Hot Cakes

I read a USAToday.com article containing the following quote: “Gold coins are selling like hot cakes.”  My point for posting the previous quote is to show that even during a recession, precious metals rise in value.  With prices dropping on everything from, cars, to homes to employee income, gold, silver and other precious metals are not just holding a strong value, but excelling.  Investors and collectors are realizing that gold is a key commodity.  And they are spending what it takes to obtain as much gold, silver and other precious metals as possible.  They are investing not just for the long term, but investing to earn a quick profit as gold value keeps rising.  I personally believe gold is one of the wisest long term investments, but recently I am starting to see that it can be a very profitable short term investment.  Who knows, maybe the new fad will be flipping gold.

PRECIOUS METALS: Rally In New York On Sharply Weaker Dollar

Article clipping via Wall Street Journal

NEW YORK (Dow Jones)–Gold futures rallied Friday on a sharply weakening U.S. dollar as participants bought back previously sold positions.  December gold rose $18.50, or nearly 2%, to settle at $955.80 an ounce on the Comex division of the New York Mercantile Exchange.  “It’s definitely about the buck,” said Frank Lesh, broker and futures analyst with FuturePath Trading.  The ICE Futures U.S. dollar index hit its lowest point since December.  “That new low in the dollar is the big driver here,” Lesh said.

Gold is often bought as an alternative currency to hedge against greenback weakness. The dollar fell as the euro and other higher-yielding currencies benefited from resilient stocks and the stronger Chicago purchasing managers’ index. At the same time, worrisome signs in second-quarter gross domestic product underscored calls for a different safe haven than the dollar.  “The dollar’s getting creamed right now,” said Patrick Donnelly, a broker with Peak Trading Group.

Technical purchasing also was supporting gold as buy stops were triggered, Donnelly said.  “We hit some stops,” said Andrew Montano, director of precious metals at Scotia Mocatta. “It’s short-covering mostly.”  Silver futures gained with gold as the U.S. dollar tanked, Lesh said. Comex September silver rose 45.5 cents to settle at $13.940 an ounce.