Dow Hits 16,000 As Certified Gold Prices Fall Posted by Brian Ford on November 18, 2013
Certified gold coin prices fell across the board on Monday as the Dow Jones Industrial Average climbed to an historic high of 16,000 thanks to heightened interest in a number of companies, most notably aircraft manufacturer Boeing. The company received approximately $100 billion in orders on the first day of the Dubai Air Show and investors responded by jumping on board with Boeing almost immediately as soon as the trading session’s opening bell sounded.
While U.S. stock markets have experienced what some analysts have called a rebound in 2013, others are less optimistic. Some economists have argued that U.S. stock indices have been rising thanks to the Fed’s lenient policy on free money, while others have contended that many part-time investors have been fooled into getting back into stocks even though the potential for a bubble is incredibly high.
If the U.S. government does have a hand in pushing stock values up then it is certainly accomplishing that mission, even if that one victory comes with a cost of failing in almost every other department. Companies have been borrowing freely due to low interest rates, but historians like Bob Nixon tell Certified Gold Exchange that the gains seen recently in stocks could be wiped out almost immediately by higher interest rates.
“Between 1960 and 1980 there were hundreds of interest rate hikes. Each 1% rise in interest rates translated into, on average, a 3% loss in stocks,” Nixon says. “Once the fed starts to pull in the reins you can expect lower stock prices, devalued bonds and inflation, and as a result certified gold prices and gold bullion prices could go back to 2011 levels or higher.”
One of the reasons so many investors prefer certified gold coins is that they aren’t forced to pull out their hair while watching the daily fluctuations. Certified gold tends to move in a more gradual fashion than does bullion, meaning that it suits long-term investors who want to buy, store and not have to think about their physical gold holdings. If you would like more information on gold bullion and/or certified gold coins call one of our non-commissioned advisers for a free mail-out kit at 8000-300-0715 today.