Concerns related to demand kept downward pressure on commodities yesterday, including gold and silver, which were down, though still holding up better than other asset classes.
In early trading gold was down $13.41 to $1,583.37 and silver was off $0.46 to $26.66, for a silver/gold ratio of 59.4, the highest reading this year.
I realize it may be depressing to watch gold and silver prices follow oil, copper, platinum and palladium lower, but we’re in the midst of a global fire sale and dealers are slashing prices on everything.
Besides, what are the investment alternatives? How’s your 401(k) working for you lately? Real estate has picked up a little, though one could argue it’s marginally better than pitch black. Buyers are still driving hard bargains and prices are not recovering in many areas.
Taken in context with what’s going on in the rest of the economy, precious metals have held up surprisingly well. All the same skepticism is recommended when you see headlines about gold reaching $8,500 an ounce by 2015. It’s funny they use the gold spike of 1980 to make their case. If you bought gold in 1980, you were underwater on that investment until roughly 2006.