Certified Gold Coins Reverse a Month’s Losses in 1 Day
Posted by James Randolph on December 10, 2013
In the last 30 days the gold spot price has fallen $26.40, or 2.03%. Today alone the yellow metal reversed virtually all of those losses by posting a $22.40 gain for the trading session. At one point gold eclipsed the one-month deficit by posting an intraday gain of $27.90 when it went to $1270 but due to a fair amount of selling spot gold settled at $1264.90 around 2pm Dallas time.
The rare gold coin market has seen some pieces fetch huge sums in 2013, as have the rare automobile and rare art markets. Investment-grade rare gold coins, however, have been unable to find a firm footing in 2013 as volatile spot prices and unpredictable international monetary policies have wreaked havoc on a wide range of financial markets. Multiple gains and/or losses of at least 10% each have been the norm in commodities and stocks for at least the last 8 years, and the volatility doesn’t appear to be drawing to a close.
The Federal Reserve and other international governing bodies of finance are at odds over how to handle the tapering of quantitative easing and the start of interest rate increases. Each time that news, data or rumors surface the markets go haywire. Things haven’t always been like this but analysts believe it could be years before U.S. financial markets show any sense of normalcy.
In the meantime diversification is the name of the game, and based on your personal worldview of how we’re handling our finances as a nation you may want to augment the volume of certified gold coins in your portfolio before interest rates skyrocket (projections are for a core rate of 4% by 2018) and gold does the same, a la 1960-1980 when interest rates quadrupled and gold went from $35 to $850 an ounce.