September 11, 2009 Posted by James Randolph on September 11, 2009
September 11, 2009 – Gold exchanges around the United States have reported a sharp decrease in the number of bullion orders and the volume of gold included in those orders. They say the trend has been steady for the past 12 months, and many of these gold exchanges blame the lack in demand for bullion products to the increasing chance of a bullion confiscation by the US government. These gold dealers are seeing more investors who are looking, not for a quick profit, but for a secure position in the precious metals market.
Bullion items, which come in both bar form and coinage, are recommended by gold dealers when the client is looking for a short-term hold. These short-term players usually wait for a pullback in the spot price, then they buy in large increments then sell after the market jumps up again, usually within a few days or weeks. The current geo-political scene, however, has many investors scared that the government is going to confiscate gold again, just as they did from 1933-1973. For investors who consider speculation out of the question, certified rare coins are usually the better way to go. These coins do tend to cost a good bit more than bullion products, because they were historically independent from gold that was confiscated. Many investors also enjoy the increased risk-to-reward ratio that certified coins offer. While many gold dealers project record high spot prices in the near future, many certified gold coins are already 200% or more below their historical highs.
The gold spot price rose again on Friday, as a flat and down stock markets helped COMEX gold move to levels of $1010 per ounce. The Dow Jones Industrial Average was down 40 points on Friday afternoon, and the NASDAQ market lost 8 points as of 2pm EST.
Senior Staff Writer – Certified Gold Exchange