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Peru's Buenaventura Eyes Gold And Silver Booty
The elevated peaks of the Andes Mountains that run through Peru make it one of the most scenic countries in South America . Peru Buenaventura
MeetBuenaventura
Buenaventura , Peru Buenaventura Buenaventura
Possible Commodity Deflation
The question for investors must be whether or not commodity prices have had their run or if they have simply pulled back temporarily. Commodities like gold are seen as an inflation hedge against a falling U.S. dollar. In recent weeks the US Dollar Index has moved upward $4 from the $72 range back in the middle of July. (Read Getting Into The Gold Market to learn more about getting into this valuable commodity.)
Tracking Commodity Prices and Currency Indexes
Investors can follow the performance of the US Dollar Index by following the PowerShares DB US Dollar Index (AMEX:UUP). The apparent rise in the U.S. dollar has been matched with double digit declines in gold and silver prices as seen by tracking the iShares COMEX Gold Trust (AMEX:IAU) and the iShares Silver Trust ETF (AMEX:SLV). Current spot prices for silver and gold contracts are $13.37 and $819.90 respectively. Overall sentiment for the U.S. dollar is negative, so a continued rise of the dollar is not expected to continue.
Recent Events
Buenaventura Peru
Final Thoughts
Buenaventura
Before deciding what to do, investors should monitor whether or not the Peruvian government will offer additional support to miners or if the miners will implement plans to produce their own energy for mining operations. As with any international investment political risk should be factored into an individual's final investment decision.
Meet
Possible Commodity Deflation
The question for investors must be whether or not commodity prices have had their run or if they have simply pulled back temporarily. Commodities like gold are seen as an inflation hedge against a falling U.S. dollar. In recent weeks the US Dollar Index has moved upward $4 from the $72 range back in the middle of July. (Read Getting Into The Gold Market to learn more about getting into this valuable commodity.)
Investors can follow the performance of the US Dollar Index by following the PowerShares DB US Dollar Index (AMEX:UUP). The apparent rise in the U.S. dollar has been matched with double digit declines in gold and silver prices as seen by tracking the iShares COMEX Gold Trust (AMEX:IAU) and the iShares Silver Trust ETF (AMEX:SLV). Current spot prices for silver and gold contracts are $13.37 and $819.90 respectively. Overall sentiment for the U.S. dollar is negative, so a continued rise of the dollar is not expected to continue.
Recent Events
Final Thoughts
Before deciding what to do, investors should monitor whether or not the Peruvian government will offer additional support to miners or if the miners will implement plans to produce their own energy for mining operations. As with any international investment political risk should be factored into an individual's final investment decision.
by
Gregory S. Davis
Gregory is a freelance writer for Investopedia.com. He has a consulting background in the banking, telecommunications and healthcare fields. Gregory is a graduate of the Wharton School of Business. Click here to visit his website.
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