Posted by Adam King on July 21, 2009
Economic Recovery = Inflation
July 21, 2009 – Gold bars and coins are losing some value today despite a weaker United States Dollar Index and contracting stock markets. Mixed economic data has caused confusion amongst many American investors, especially since one day we hear that unemployment is skyrocketing while inflation is growing, and the next day we hear that we are on the way to an “economic recovery.” According to several market analysts, an “economic recovery” within the next year may not be a real recovery whatsoever. As you may already know, the United States Government has pumped trillions of dollars into our economy in order to prevent a large-scale loss of confidence with the United States Dollar and it’s mainstream investing markets. If we do see this “economic recovery” soon, it would only be to restore confidence in our collapsing economy, when in reality inflation could soar to very dangerous levels as a result. Several market analysts have even said that we may see a reoccurrence of what occurred in the late 1970’s when gold bars and coins increased in value more than 800% in just two years as investors flocked away from failing stocks and bonds in exchange for an asset with true value, gold. Let’s see if history repeats itself.
During the midday trading hours, gold bars and coins are losing value as the spot price of the metal takes a small set backwards based on investor uncertainty at the moment. Currently, the spot price is sitting at $944.70 per ounce, down $4.40 for the day, yet still up $11 in the last month.
Senior Staff Writer – Certified Gold Exchange
US Gold Market