As many jewelers, especially goldsmiths, may already know, May has been named “Gold Month.” Being from New Mexico, I usually prefer silver to gold, but I’ve recently become curious about gold and why it’s so timelessly sought after. The more I learn about it, the more intrigued I become…
precious metal markets
Back in 1979 the infamous Hunt brothers largely cornered the market on silver, driving the price from $6 per ounce to an all-time high of $48.70. Their scheme unraveled when the COMEX intervened, and silver rapidly shrank back down to more accustomed prices.
But here we are in 2011, and silver prices are once again whipsawing – trading at prices well north of $40, and then dropping $10 in less than a week down to $37 or so. But our current situation is different from conditions back in 1979, and while no one knows for sure, it seems possible that silver may have enduring higher prices going forward.
“BAM!” is what Emeril the chef says on his cooking show. And “BAM!” is what I felt when I saw the price of silver top the $30 mark on Monday. Lately, listening to the news has seemed surreal. The Chairman of the Federal Reserve, Ben Bernanke, has been quoted about “fears of deflation”. Yet here is $30 silver, where just a couple months ago it was half that price. What is a jeweler supposed to do?