Posted by Adam King on March 10, 2009
March 10, 2009 – There appears to be a cloud of false hope striking the minds of investors at the moment, as many believe that the global economy is well on its way to recovery due to trillions of dollars spent on stimulus and bailout packages. Gold prices are falling today for the second day in a row, yet many certified gold coins are still holding on strong to their value after the metal has fallen more than $100 from the peak that was achieved on February 20. Several investors are selling their gold bullion in order to invest in other markets such as equities and oil that have rebounded this week due to slightly more positive economic data. Precious metals are continuing to witness pressure as money begins flooding the majority of other investing markets. Many investors don’t understand why such sudden movement is being made, especially after stocks have fallen to multiple-year lows. The answer is simple, and it all revolves around the massive injection of fiat currency that is only a temporary fix to the catastrophic problems we face in our economy. Fortunately, the hyperinflation that may result in the upcoming months and years could be combated with precious metals like certified gold coins.
The gold spot price has taken quite a significant hit today, and it is currently trading at $894 per ounce, down $27.50 or 2.98% for the trading day and also down $17.40 or 1.91% in the last 30 trading days. Despite these recent losses, spot prices are still up about 25% in the last four months and they are projected to continue increasing into the near future as a safe haven demand begins once again when investors realize the true meaning of this financial crisis. Happy certified gold investing.
Senior Staff Writer – Certified Gold Exchange
US Gold Market