Posted by Adam King on October 13, 2009
October 13, 2009 – Certified gold coin prices have registered gains for six consecutive trading days, and the gold spot price reached a new all-time high of $1069 earlier this morning, before it tapered off at $1065.40 by 2pm EST. Investors can find the industry recognized national average retail price for graded coins at www.PCGS.com, although some large volume certified gold exchanges may sell coins for below retail levels. A large number of investors have recently added gold and silver coins to their portfolios because of the US eco-political climate, and some economists believe that further damage could be done to our nation’s economy during the next few months.
Our nation’s leaders are taking a lot of flak for their involvement in our current recession, which has been deepened by the bailout and stimulus plan that has already pledged $11 trillion to temporarily shore up a falling economy. Many Wall Street economists fear that our economy will begin to freefall once the recovery funds are fully exhausted, but these fears are not the only reason that investors buy gold. While inflation does not appear to be a serious threat at the moment, a severe bout with hyperinflation could result when the Federal Reserve starts to raise interest rates, which have been close to zero for an overextended period of time. "We’ve had a weakening dollar today, which has definitely been supportive of gold prices," said Carlos Sanchez, a precious metal analyst for CPM Group in New York. Sanchez added that inflation could be a “long-term concern" for investors who are heavy in US dollar-based assets. Investors who simply want a hedge against inflation for the next few months may do better with a gold bullion investment. For investors who dread the long-term solvency of our dollar, and our way of life, certified coins are a more appropriate option. Regardless of the type of precious metal that is purchased, physical delivery is strongly advised. This way, your gold comes with privacy, liquidity, and security.
Senior Staff Writer – Certified Gold Exchange
US Gold Market