Price of Gold and Silver Fall with Stock Markets Monday – Time to Buy or Sell?

As the NASDAQ and the Dow followed the other stock markets in a downward spiral on Monday, the price of gold also tumbled from its once high perch. The question, however based on the recent gold price climb to nearly $2000 per ounce is, whether this signals a good time to buy or time to sell.

In a falling market today, gold prices fell by just over $50 closing at $1,678.60 an ounce. The drop today was part of the overall market reaction to the absolute failure of the congressional “super” committee to accomplish anything in terms of reducing the government budget.

While most people would be fired from their jobs if the continually failed, over and over again, to accomplish any of the tasks for which they were hired, congress appears to be immune to such action.

As a result of their ineptness and political posturing in favor of helping the Americans who put them in office, the so called super committee drove stock market down, taking the 401K accounts of millions of Americans with them, by their inaction.

The move away from gold, as well as silver whose price fell $1.30 to #31.11, helped to boost the dollar up by 0.31% to $78.26. The change is a sign of a move by investors to a cash position.

While current conditions indicate that ‘cash is king,’ experts say don’t write gold off just yet. Just as the previous S&P downgrade of the U.S. economy led to continued growth in the price of gold and silver, continued concerns over the economy in the face of the latest congressional failure could lead to another price spike in the precious metals.

For those who missed out earlier, now could be a good time to invest in gold and silver while prices are down.