Posted by Adam King on July 22, 2009
All Eyes On 2010
July 22, 2009 – Gold coins are increasing in value today as the United States Dollar Index continues to fall based on growing speculation that inflation could become a major issue in 2010. According to several market analysts, gold coins may continue increasing in value next year as the United States Dollar begins to feel the true effects of inflation after our latest overprinting and quantitative easing measures. The Federal Reserve has already mentioned that they will keep interest rates low for an “extended period,” thus limiting inflation until they decide to increase interest rates. The last time that the United States saw a similar economic environment was in the late 1970’s when inflation was growing at a dangerous rate and safe haven demand for gold coins skyrocketed, thus pushing the gold spot price up more than 800%. Many investors and market analysts believe that current economic conditions are falling into place perfectly for a repeat of such market movement. This being said, keep a close eye on market movement throughout 2010 in the event that spot prices go through the roof as has been projected.
By 1:30 PM Eastern Standard Time, gold coins have rebounded from yesterday’s minor losses, and currently the spot price of the metal is sitting at $953.30 per ounce, up $4.30 for the day, and also up $3.70 in the last month. Short-term projections are looking bullish once again, with several market analysts forecasting $975 per ounce by next week.
Senior Staff Writer – Certified Gold Exchange
US Gold Market