Posted by Adam King on May 20, 2009
Next Stop…Record High???
May 20, 2009 – Since the beginning of the week, safe haven demand has been increasing at a rapid rate as inflationary pressures are building quickly along with speculation that the financial crisis will get significantly worse before we can see light at the end of the tunnel, and this is causing increases in the prices of the most popular certified bullion and investment grade certified rare coins. Many wise investors around the nation are flocking to safe haven precious metals, especially certified bullion and rare coins because the spot price of gold may climb close to its record high in the short-term as the United States Dollar continues its devaluing streak and stock markets continue in their unstable fashion. The overall physical possession demand for the metal has increased 38% this year, and this has brought the spot price up 16% for the first quarter of 2009. Market analysts are saying that this may just be the beginning of a dangerous inflationary cycle that may result in significantly higher spot prices, possibly even making the speculative projections a reality, thus we could see $1200 per ounce by mid-summer if things continue heading in their current direction.
During the midday trading hours, the majority of certified bullion and several investment grade rare coins are increasing in value slowly but surely as the gold spot price has officially passed the $930 per ounce resistance level, currently sitting at around $936.20 per ounce, an increase of $11.20 or 1.21% for the trading day and also an increase of $51.40 or 5.81% in the last 30 trading days.
Senior Staff Writer – Certified Gold Exchange
US Gold Market