Posted by Adam King on October 30, 2009
October 30, 2009 – Certified gold coins maintained their value this week, despite the substantial decline in the gold spot price during the first three days. Some investors have claimed that the rally that brought the gold spot price to $1071 has been overdone, but yesterday’s spike is evidence to the contrary. The gains that the gold spot price has made in the last month are impressive, but the vast majority of gold investors expect these spikes to continue as long as our economy continues to devolve. The US economy has contracted significantly during the last three years, and our government’s stimulus plan is to thank for any growth this year. Our economy will most likely shrink again once our Administration exhausts the stimulus fund-although our lawmakers could always ask for more money. Investor demand for certified gold coins like the $20 Saint Gaudens and the $10 Indian Head will probably increase as our nation’s financial situation worsens; our recession has elevated some certified gold coins over 150% within the last three years. Our dollar gained slightly versus the euro and the yen today, but most American investors are more concerned with long-term inflationary pressures on US currency. Gold prices tend to move opposite the greenback, and this is exactly what has transpired so far today.
The gold spot price was at $1042.60 per ounce at 11am EST, down $2.50 for the day and up $33.30 in the last month. Projections from the Wall Street Journal are for the gold spot price to reach $1100 before the end of 2009, so investors are anxious to see whether these numbers will materialize before the ball drops for 2010. Investors who want to learn more about the gold price and certified gold coins should visit www.GoldPrice.net, where live prices and information is available around the clock
Senior Staff Writer – Certified Gold Exchange
US Gold Market