Buy Gold Coins Posted by James Randolph on June 03, 2009
Positive Upturn, Little Sustainability
June 3, 2009 – The United States Dollar is currently rebounding from some major losses that have been experienced in the past few weeks, yet many market analysts believe that this positive upturn cannot sustain because the fiat currency does not have the strength to increase in value significantly, thus American investors may continue to buy gold coins as their hedge from losses that are imminent with dollar-backed assets. Historically, investors buy gold coins and bars when they fear problems with fiat currencies and mainstream investing markets, and our currently worsening financial crisis has created significant demand for the metal in both the short-term and long-term perspectives. Short-term investors are using gold as a profit-taking tool that has shown a close inverse correlation with the dollar, while long-term investors are using the metal as a preservation tool from inflationary and deflationary pressures that may grow down the road as a direct result of our massive overprinting of United States Dollars. Several market analysts and financial institutions are highly recommending that American investors protect themselves with a well-balanced safe haven diversification in the event that the economy continues to head in the downward direction.
By around 1:45 PM Eastern Standard Time, it appears that less investors are deciding to buy gold coins today as the United States Dollar halts its declines and begins heading in the upward direction, thus the spot price of gold has fallen to $962.90 per ounce, down $18.20 for the trading day yet still up $59.70 in the last 30 trading days.
Senior Staff Writer – Certified Gold Exchange