Gold: $1,284.34 2.83
Silver: $17.22 0.08
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August 23rd Weekly Silver Market Update
Article By: Kyle Wanchalk on August 23rd, 2013

Gold and silver ended up having a pretty good week when all was said and done, thanks, in large part, to a fairly drastic upswing on Friday. As gold edges toward the $1,400 threshold and silver moves closer to a $24 spot value, the world marketplace is seeing an increase in people buying gold and silver as safe-haven assets. With the ongoing turmoil in Egypt, and a looming currency crisis in Asia, the atmosphere is perfect for gold to be seen as a safe place to allocate investing funds.

The Fed released the minutes for their upcoming meeting earlier this week, though no shocking announcements were made. Gold and silver have now been on the move upward for two straight weeks and this recent upswing is looking more and more like it will continue into next week as well.

Asian Currency Crisis

Almost a full two weeks ago now, gold and silver began what has thus far been one of the longest lasting upswings we have seen from both metals in a while. While the whole world marketplace had their attention fixated on the rising spot values of gold and silver, an almost equally important story went unnoticed. Around the same time gold and silver were on the rise, some Asian currencies began to depreciate rapidly. The Indian Rupee and the Indonesian Rupiah began to fall in value at about the same time precious metals gained value, and their decline is not quite yet over so it seems.

Higher, rising interest rates in places like the United States and Europe are being given the blame for the Rupee and Rupiahs’ decline. The most unnerving part about this whole story is that many market experts believe more than just the Rupee and Rupiah are at risk. In fact, the overriding fear is that a large quantity of mid-level currencies will be hit with heavy downward selling pressure should interest rates continue to rise like they have been. Though Indian and Indonesian government officials have been doing what they can to alleviate some of the selling pressure being placed on their currencies, these actions have proven to be more futile than anything.

We will continue to monitor this growing currency crisis for any further developments.

FOMC Minutes Released

Whenever the Federal Reserve meets or releases a statement, it’s big news. This week was no different as the Fed was releasing the minutes for their upcoming September meeting. Investors were anxiously awaiting the release of the FOMC’s minutes due to the fact that many hoped more information would be released regarding the ending/winding down of Quantitative Easing.

QE has been a topic of debate for some time now and while many think that the monetary policy will be done away with by the end of the calendar year, an equally strong contingent believes that QE will be retained in full, into 2014.

When the minutes were released it came as no shock that little information was released in regards to Quantitative Easing. In fact, the only clear picture that the Fed’s minutes gave investors was that the Fed currently can’t seem to come to a consensus on anything. With the September meeting on the horizon, the Federal Reserve and its members have a short while to get their act together.

This market update is provided weekly with analysis. You can always check spot silver price per ounce by watching our on-site charts.