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[…] Safe Haven Metal company logo of a shield with the letters "SHM" as the body, and the company name in over under format, silver and gold colors
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How Does the U.S. Dollar Impact Prices?

How Does the U.S. Dollar Impact Prices?

The U.S. Dollar, as the primary global currency,  serves as the base currency for purchasing precious metals such as Gold and Silver. The historical data from the past century allows us to understand how the U.S. Dollar influences the prices of precious metals.

Precious Metal Prices

In the world market, the prices of precious metals are denominated in U.S. Dollars. These prices, known as spot prices, constantly fluctuate during global market hours. Staying updated on performance indicators is crucial as they significantly affect the buying and selling precious metals.

In the world market, the prices of precious metals are denominated in U.S. Dollars. These prices, known as spot prices, constantly fluctuate during global market hours. Staying updated on performance indicators is crucial as they significantly affect the buying and selling precious metals.

Several factors contribute to the fluctuation of spot prices, including economic conditions, currency exchange rates, speculation, and supply and demand. 

U.S. Dollar in hundreds lays under bricks of solid gold

The availability of precious metals also impacts their prices. When a particular precious metal is in high demand, its price increases. 

 

You can access financial news networks or online platforms like Safe Haven Metal’s Live Spot Charts to stay informed about spot prices.

The U.S. Dollar

The value of the U.S. Dollar is determined by analyzing factors such as American debt levels, interest rates, global economic market strength, unemployment rates, consumer confidence, inflation rates, and recent oil prices. Gold, Platinum, and Silver are all measured in U.S. Dollars as they are dollar-denominated assets in global markets.

The U.S. Dollar became the global standard for precious metals prices due to the strong and stable economy of the United States. 

Fed Reserve collage, with the chair overlaid in one corner, the U.S. Dollar opposite him, and above him is rows of gold, to the far left is the stock market floor

When the U.S. Dollar strengthens, commodities worldwide become more expensive in other currencies, negatively impacting demand. Conversely, when the U.S. Dollar weakens, commodities prices in other currencies decrease, leading to increased demand.

The U.S. Dollar and Precious Metals

Investors are less inclined to buy dollar-denominated Precious Metals when dollar values are high because the purchaser gets less for their money.  This is why Precious Metals are negatively impacted when the Fed hikes interest rates because higher interest rates will increase the demand for dollar assets and make the dollar stronger. This model is especially true for anyone using non-American currency since exchange rates against a strong dollar will be low.  Exceptions include times when the U.S. economy is strong, and manufacturing demands for Precious Metals are also rising.

 

Given the extensive use of the U.S. Dollar in international transactions, it is unsurprising that the prices of precious metals are closely tied to it. During economic crises, investors often turn to precious metals as a safe haven and a hedge against inflation.

Since the early 1970s, when the U.S. moved away from the Gold Standard, a relative inverse relationship has been observed between precious metals and the U.S. Dollar in their financial patterns. 

Generally, when the U.S. Dollar strengthens, the prices of Silver and Gold tend to remain low.Conversely, precious metal prices tend to rise when the U.S. Dollar weakens.

For instance, during the financial collapse in mid-2008, precious metal prices spiked as the U.S. Dollar weakened. Similarly, precious metal prices fell when the U.S. Dollar strengthened in mid-2014 due to concerns about global economic growth and potential interest rate hikes.

When the value of the U.S. Dollar is high, investors are less inclined to buy dollar-denominated precious metals as they get less value for their money. This is particularly true for those using non-U.S. currencies, as exchange rates against a strong dollar tend to be low. However, there are exceptions when the U.S. economy is robust, and there is increased demand for precious metals in manufacturing sectors.

The Bottom Line

In conclusion, a stronger U.S. Dollar tends to keep precious metal prices lower and more controlled, while a weaker U.S. Dollar is likely to drive prices higher due to increased demand. It is important to note that while the relationship between the U.S. Dollar and precious metal prices is significant, other factors such as interest rates, inflation, monetary policy, geopolitical events, and supply and demand also influence their values.

Despite the current standing of the U.S. Dollar, precious metals, including Gold and Silver, are still considered excellent investment opportunities for protecting against economic events such as currency devaluation or inflation. Additionally, precious metals serve as a safeguard during periods of political instability. Safe Haven Metal advises you to consult a financial advisor or professional for specific portfolio investment strategies. 

Read more about the power a Gold IRA offers you.

On the topic of the Fed and the U.S. Dollar, check out a great movie about the 2008 crisis, Too Big To Fail, the documentary is near identical, showing the detail that went into the movie, with brilliant acting.

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Simplified Short Version of Terms and Conditions of Website

This is only a simplified version of the full terms and conditions, it is intended as a quick overview regarding the things as people are most commonly relevant to us.

This website is governed by the full terms and conditions.

Purchase and sales agreements are separate, and provided in different links found on the footer. 

Consent to Contact

Submitting your contact information on any of our contact forms and or calling or emailing Safe Haven Metal is a grant of consent for us to contact you via telephone or email. This consent is a waiver if you are on the do not call list registry and any email shall not be considered spam or unsolicited. Safe Haven Metal will contact you to discuss your needs and no other use of your contact information will be engaged in by us. We do not sell your phone number or email information to anyone.

Please review our Privacy Policy and Cookie Policy for opt out procedures and additional information. The bottom line is that we do not like it when companies sell our information so we will not do it to others.

AML POLICY

Due to Anti-Money Laundering (AML) Policy restrictions and guidelines, we do not accept physical paper money (cash) for purchases. If you do not know what the AML is, you really need to look it up, as it applies to everyone.

As a financial institution, Safe Haven Metal is AML compliant.

PAYMENT OPTIONS

For products that will be delivered to you directly these traditional forms of payment are accepted: bank wire (we prefer this one), cashier’s check, ACH; also IRA is acceptable but that has tax consequences for you.

For products that will be stored by a third party (depository), IRA, 401k, Pensions, Retirement Account, etc. (see full list on Gold IRA page) are all acceptable forms of payment.

We do not accept credit card payments, cash over $10,000 and we do not accept cryptocurrency, we are happy with our real gold.

BUY BACK POLICY (from the purchase agreements)

Safe Haven Metal (SHM) is prohibited under the law from guaranteeing to repurchase Precious Metals that SHM sells, and SHM does not guarantee that it will repurchase any Precious Metal item that Client may purchase; what SHM extends is the possible availability as a buyer at a later date. If and when Customer desires to liquidate, simply call SHM and let SHM know you are ready for SHM to exchange for cash the Precious Metals purchased from us subject to the following procedure that must occur:

i.)         Customer ships the Precious Metals products originally purchased from SHM for inspection because the buy back offer is only for the exact items purchased from us, inclusive of exact condition; and 

ii.)        The cash value of buy back will be at or near Spot Price at the time when we have examined the product to ensure it passes inspection (which is at our or our designated inspector’s sole good faith discretion as to current condition compared to documented condition when originally purchased); 

iii.)      A new agreement is then presented by SHM to Customer reflecting Spot Price and conditions quantities much like this Invoice; the offer is valid for 24 hours after inspection approval and new agreement sent; 

iv.)      Once signed and returned to SHM the money is then released to you within 72 hours; if Customer rejects the offer then Customer must pay for return shipping costs and the product will be returned to Customer. 

v.)          There is no fee on buy back, as that fee is part of the initial purchase Agreement with us as a part of our consideration to be available for your needs at a later date, consistent with this whole paragraph.

Risk Disclosures

Investing in everything is a risk; values fluctuate, sometimes going up, other times down; no one can predict the future; that is why diversified portfolios are usually recommended. The best anyone can do is make informed decisions and see if correct over time, therefore do research, do your homework. Do not invest more in precious metals than you feel comfortable with after informing yourself. Read your contract; ask your attorney to review it. We strive to do right and help others, if you do not understand something then ask us. There are no guarantees, other than doing our best for you.

DISCLAIMER

Our communication of portfolio is intended as Oxford Dictionary defines “portfolio” as: “a range of products or services offered by an organization, especially when considered as a business asset” and Oxford defines “analysis” as “detailed examination of the elements or structure of something”.

All information provided on this website is the opinion and property of Safe Haven Metal LLC. All customers and potential customers are encouraged to do independent research, educate yourself and make informed decisions. Then you can make the best decision for yourself. Once you have done your diligence you will see that Safe Haven Metal LLC truly does have our clients’ best interests in heart. We would not encourage you to go look around elsewhere if we were not confident in what we offer and provide.

NOTICE: Any images of persons on our site are from professional models obtained through licensing of various companies.

Full Terms and Conditions

The full terms and conditions control over this simplified version. This is intended as a quick reference point only. You can access and read more on the full terms and conditions page.