Lisa


Do precious metals increase in value as the dollar drops??

6 Responses to “If the value of the dollar drops, will the value of gold increase?”

1. rshiffler2002 on June 30th, 2009 3:57 pm

   All other things being equal yes.

2. TheSlayor on July 3rd, 2009 2:30 am

   No, not necessarily. At best, there is only an indirect linkage between US$ and precious metals. But whatever triggered the drop in US$ might also lower the pricing of precious metals.

3. Jeff M on July 5th, 2009 1:49 am

   There might be a correlation. Typically if the value of the dollar drops foreign investors are going to look for other things to stash their money into. Recently that might I explain the high prices of gold and this trend. It doesn’t mean it’s guarenteed but it could be likely.

4. Thin Kaboudit on July 6th, 2009 11:22 pm

   Not really, the two things are not much related:

5. Lawrence E on July 7th, 2009 7:08 pm

   The key in this sort of currency speculation is, what other currency is tied to gold. That would be the Swiss Franc. Many accounts on deposit there in the famous Swiss banks contain gold. So, specifically when the dollar loses value against the Swiss Franc, look for gold to firm up a little.

   Otherwise as a rule, precious metals seem to run together on the strength of mining stocks. Or they follow moves upward in Oil, on international catastrophes. Because people still flock to gold, when they think the world is going to end.

6. Frank Castle on July 8th, 2009 3:49 pm

   1) No.
   2) No.

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