September 25, 2009
Posted by Adam King on September 25, 2009
September 25, 2009 – Certified gold posted 1.3% profits on Friday morning, after Federal Reserve Chairman Ben Bernanke announced that he aims to provide more federal assistance for consumers and businesses. The distaste is due to the fact that current government stimulus programs have provided little or no visible relief for Americans, and giving away more free money could spark a high-inflationary cycle that could last for years. Certified gold coins registered a gain today because of the large number of investors who sold their gold bullion or shifted it into a historically safer, long-term certified coin position.
Bernanke’s assessment of the economy, according to AP economics writer, is that a spark is still needed to catalyze consumer spending. The purchase of securities that are backed by home, auto, and student loans could cost up to $1 trillion alone, according to the article. The problem with Bernanke’s plan is that it does not take into account the 2 million Americans that are newly unemployed each month, or economists’ projections that the Dollar could collapse. The latter is keeping many Americans so fearful that they are transferring funds from banks and retirement accounts in order to take control of their own collective futures. Loans are more difficult to secure today for many people, and analysts believe that this could hinder economic recovery as well. Numismatic gold coins are the same assets that historically did well when inflation and unemployment levels were a major problem in the 1930s and the 1970s, and investors think that returns from those cycles could be mirrored.
Investors with certified gold holdings have watched their portfolios swell since the market took off in 2001. The gold bullion spot price has skyrocketed more than $700 since that time, and many economists believe that gold should continue to rise for the next few years, barring some sort of miraculous economic recovery. The current gold spot price, which affects bullion and certified coins, is $991.20.
Stewart Lawson
Senior Staff Writer – Certified Gold Exchange
Categories:
US Gold Market
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