Gold’s Monthly Sell-Off Posted by James Randolph on January 06, 2009
Gold’s Monthly Sell-Off
January 6, 2009 – As usual, short-term investors are selling their gold and certified coins during the beginning of this month for the third straight session due to the dollar strengthening and reducing demand for precious metals as an alternative investment, at least for the meanwhile until things really start to get worse. The dollar climbed above 3.5% versus the six major currencies since December 29, 2008. Since gold and certified coins usually move in the opposite direction of the United States Dollar, we’re seeing slight decreases in precious metal demand, but this will only be temporary. For some reason, investors feel like the United States will pull itself out of the recession before other countries do, and this is why more confidence is being put in our national currency.
Today, gold is trading at around $850 per ounce, down $8.20 or .96% for the trading day and still up $95.80 or 12.70% in the last 30 trading days. Despite the latest fall in gold prices, investment-grade certified coins have remained impressively stable and have not fallen at all compared to bullion bars and coins like the American Eagle coins and Johnson Matthey bars.
Future projections are looking very positive for gold and certified coins, and the average spot price projection is around $920 per ounce during 2009. Other more speculative projections say that the metal could be anywhere around $1200 per ounce due to increased demand for alternative investments during one of the hardest times for country since the Great Depression. Invest well and have an excellent day!
Senior Staff Writer – Certified Gold Exchange