In the volatile commodities and money markets, the spot price of gold dropped under $900 per ounce briefly as the dollar rose against the Euro. Pressure is being placed on the Euro as analysts think it may not be able to maintain its current value against the weakening dollar and the high price of crude oil.
Bloomberg is reporting that analysts believe that the price of crude oil is unsustainable and will weaken other non-dollar currencies as the price falls. Speculators are selling gold futures looking to make more money with oil and currency futures. This has lead some analysts to believe that gold will fall below $900 by the end of the year citing lows in the range of $860 to $880.
Silver is also trading lower but above the $17 mark. Analysts speculated that silver will slip below $17. Nobody expects the prices to reach the levels seen in 1980.
For numismatics, the lower spot price of precious metals should lower the cost of bullion coins, such as the American Eagles. However, with the popularity of collecting earlier common date gold coins, those prices may not fall as much since their numismatic value may help them maintain their prices.
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