Gold Prices Posted by James Randolph on August 13, 2009
August 12, 2009 – The gold spot price closed today at $949, up by $1.20 since yesterday. Gold prices have leveled off recently, and many financial experts attribute this to confusion between developments in the global market, combined with news from the Federal Reserve, saying that economic recovery has begun. The Fed plans to curb the pace of a projected $300 billion in Treasuries purchases, until the plan ends in October. Investors in physical gold may find this announcement a bit contradictory, since the spending project was originally scheduled to end in September. Fed Chairman Ben S. Bernake also attributes our so-called pullout from an economic nosedive, to $1 Trillion in emergency funding for banks and markets from “commercial paper assets”, to asset-backed securities. Although it wasn’t specified what exactly those assets are, further assurance from the FOMC, that interest rates will remain between zero, and 2.5%, which will bolster borrower and investor confidence.
This news that the worst global economic slump in the post World War II era is over, may be music to the ears of desperate multitudes, but a great many physical gold investors know better. These investors know that manipulated interest rates and over leveraged loans are what started this global financial debacle in the first place. Economic recovery certainly doesn’t occur overnight, and the powers that be are saying what they can, to avert a panic. Investments in rare coins like $20 Lady Liberty’s and $20 Saint Gaudens, are historically proven to be ideal long-term investments for financial safety, which is what household investors everywhere, are currently seeking. Unless, of course, you believe that economic recovery is truly at hand.
Senior Staff Writer – Certified Gold Exchange