March 8th Weekly Silver Market Update |
Gold: $1,976.61 -7.03
Silver: $24.39 -0.12
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March 8th Weekly Silver Market Update
Article By: Kyle Wanchalk on March 08th, 2013

Silver and gold both saw relatively stagnant weeks this week as there were few outside forces strong enough to push the metals one direction or another. The Dow Jones in the US hit an all-time high midweek which led to a decreased interest in metals and an increased attentiveness to riskier investments. While it wasn’t a great week, we can be satisfied knowing that silver did not take the same type of fall it has been as of late.

Devaluing Currencies Wordwide

While precious metals prices in the US are struggling considerably, the yellow and silver metals are doing extraordinarily well in other parts of the world. In countries like Iceland and Brazil, where monetary policy has forced currencies to take a nosedive, gold and silver are both doing very well. Traditionally, investors tend to put a lot of stock in metals once their country’s paper money begins to lose power.

Japan, whose newly initiated governing power instituted currency devaluing monetary policy, is seeing an increase in the demand for gold and silver unlike any in recent years. So long as monies begin to carry less weigh, metals will become increasingly popular.

Unemployment Rate Decline

One of the few things keeping gold’s head above water in the US is the sub-par unemployment rate. Over the course of the past year the unemployment rate has hovered around 8%, but with an improving economy that number has begin to fall.

A job report that was released at the end of the week stated that over 200,000 jobs were added in the United States and that the unemployment rate has fallen to 7.7%. Now this may not seem like a substantial decrease in the rate of people who do not have jobs, but even tenths of a percentage point means for a lot of jobs added to the economy.

Looking Forward

While this week was yet another lackluster one for precious metals, it is no wonder that investors have their eyes fixated on the week ahead. Increased demand in outside markets will hopefully spur an increase in demand for metals in the US, but only time will tell.

Weekly Move

From the opening of the week on Monday to closing on Friday, gold moved from $1,579 to $1,580, a near stagnant performance. Silver, on the other hand, moved from $28.68 to $29.02.