DIsclaimer: If you are an experienced investor in precious metals, you are way ahead of me. My articles regarding the spot price of commodity silver target people like me - people who've worked with silver end products such as flatware and hollowware for a number of years and who now find their work more strongly affected by the recent dramatic changes in the spot price of silver.
Here are some articles to read first to get a little background:
- Silver price recovers its lower ratio with gold price
- Egypt and short covering cause silver and gold prices to rise
- Silver price vs. gold price - is silver overpriced?
- Silver price decline rate in January twice that of gold
- Gold-silver price ratio poised to break through 50
The impact on the price of gold and silver by the turmoil in Egypt may have run its course. Even with increased violence in Egypt during the past 48 hours, the gold and silver markets have responded with a big yawn.
There was a quick run up in prices right after the demonstrations began. That's a typical knee jerk reaction to an event like this. Now, investors have had time to evaluate what the impact might be on global precious metals prices. The issue in Egypt will be settled one way or the other. Will any outcome that is contained within Egypt really have an impact?
Of course, there is always the possibility that unrest could spread to other countries in the region. We've seen some governemnts try to gain the upper hand by moving now with either proposed improvements or increased force. However, for the time being, Egypt may not be that big of an issue on prices.
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