Posted by Adam King on April 13, 2009
And The Rally Begins…
April 13, 2009 – After a long weekend, American investors prepare for another round of fluctuation as the United States Dollar and its equities lose a bit of value while gold and certified rare coins are increasing in value as the overall demand for store of wealth investments spikes. The Standard & Poor’s 500 Index has fallen more than 1.3% based on concerns that corporations will report lower than expected earnings. A recent Bloomberg.com article noted that if these earnings don’t meet expectations that short-term movement could be positive for precious metals such as certified rare coins and bullion products. Many investors are eagerly awaiting these reports from Citigroup, Goldman Sachs Group Inc., J.P. Morgan Chase & Co. as well as General Electric Co. It’s important that we keep a close eye on the strength of equities in order to make a sound diversification in store of wealth assets because historically, equities and gold move adversely to each other.
Today it seems like the gold spot price is reacting quite well to the latest economic fears, and the metal is currently trading at around $894.40 per ounce, up $15.20 or 1.73% for the trading day yet still down $35 or 3.77% in the last 30 trading days. The latest short-term projections are looking solid for bullion and certified rare coins, and several market analysts are expecting at least $1200 per ounce by the end of the year. This being said, doesn’t it make sense to diversify correctly in order to preserve and possibly even profit down the road?
Senior Staff Writer – Certified Gold Exchange
US Gold Market