Certified Rare Coins Posted by James Randolph on August 10, 2009
Awaiting Higher Interest Rates…
August 10, 2009 – In the past few trading days, the gold spot price has fluctuated between losses and gains, yet today it appears that the metal continues heading downwards while certified rare coins continue holding on to their value as they typically do when the gold market experiences hasty fluctuation. The latest economic data is showing that the United States Federal Reserve is preparing to meet tomorrow in order to discuss the future of interest rates, and according to several market analysts they may increase interest rates by a soon as the end of this year. This could also mean that the current $300 billion treasury buying program may end sooner than expected as a small boost in the housing sector has prompted central banks to rethink their spending programs. As you may already know, higher interest rates could spark dangerously high inflation, which in turn may be very beneficial for certified rare coins because the last time that our economy faced a similar high-inflation/rising interest rate period, the gold spot price increased in value more than 800% in just two years. Will we see hyperinflation in our near future?
By 11:45 AM Eastern Standard Time, gold bullion bar and coin prices continue to tumble, yet certified rare coins are holding on strong to their value despite the spot price of the metal falling to $946.10 per ounce, decreasing $9.30 for the trading day, yet increasing $33.10 in the last 30 trading days. The latest short-term market forecasts are predicting that the spot price may fluctuate in its current range as the tug-of-war between gold prices and the United States Dollar continues.
Senior Staff Writer – Certified Gold Exchange