Heading Towards Zero Posted by James Randolph on December 16, 2008
Heading Towards Zero
December 15, 2008 – Gold bullion spot price continues upwards at 10:30 EST, currently at $835.40 and almost completely on par with platinum trading at $838.00 or just $2.60 above the gold spot. This trend could continue with gold spot price surpassing platinum within the year. With a major cut back in the industrial use of platinum and increased investor demand on gold, this trend could grow substantially with gold being 20% – 25% higher than platinum by the end of 2009.
The trend for high-grade certified gold coins continues to increase with the base metal price. Today, late in trading, the MS-65 $20 Lady Liberty coin made a huge jump of $175 at the retail level, indicating investors may attempt to drive the prices back up to recent highs. The MS 65 $20 Lady Liberty coin is $1250.00 under its recent historic high and could be a wise long-term purchase.
The Federal Reserve is expected to pull another dog and pony show on the 16th by lowering interest rates to 0.50%. Want to buy very expensive things really cheap? Get ready to because this should accelerate the current deflation and increase the layoffs at a stellar pace. I’m projecting this move will cost us 4 million jobs in the first quarter of 2009. The dollar should take a nice hit with this free money approach to repairing a credit crisis. It’s already getting clobbered against the Euro, which trades at $1.37 over the dollar.
Extending another life vest, an entity of the Federal Reserve purchased 39.3 billion worth of bogus assets from the bewildered insurance giant AIG today. This brings AIG’s government bailout/Christmas bonus money to over 160 billion that we know about. Maybe the big three should hire a few of those AIG executives so they can get just a little slice of all that cheese. Happy Certified Gold investing.
SR Gold Specialist