Posted by Adam King on May 13, 2009
Gold Hits 6-Week High
May 13, 2009 – United States safe haven demand for physical possession precious metals like the American Eagles and India gold coins is beginning to take prominence above other diversification methods like stocks that are currently floundering based on heavy negative sentiment about the future of our economy. It appears like many wise American investors are beginning to take significant interest in certified investment-grade rare coins such as the popular $20 Saint-Gaudens and $10 Indian gold coins. For those investors who don’t know, certified rare coins are considered to be a safer alternative to modern-day bullion because they cannot be confiscated by the United States Government, plus they have shown better profit and wealth preservation when held over a three-year period or longer. It’s important that investors understand that products like the Indian gold coins are not recommended for short-term profit-taking reasons because they have proven their distinct qualities only as long-term diversifications.
During the midday trading hours, it appears like the United States Dollar and the gold spot price are both heading in the upward direction, yet several market analysts believe that a negative correlation between them will continue later on in the week because inflationary pressures are becoming more visible in our economy. The current spot price of the metal sits at $927.40 per ounce, up $4.50 or .49% for the trading day. Short-term market projections are expecting dollar weakness to continue, which in turn may increase safe haven demand as investors typically flock to precious metals when they fear problems with other markets.
Senior Staff Writer – Certified Gold Exchange
US Gold Market