Govt. Shutdown affects Certified Gold Prices
Posted by Brian Ford on September 30, 2013
A pair of U.S. government shortcomings is keeping certified gold coin prices from going up or down, as some investors interpret our government’s financial woes as signs to sell or hold but others see the economic problems within our nation as a sign to buy certified gold coins. PCGS and NGC price guides remained unchanged in terms of pre-1933, U.S. gold coinage although the Certified Gold Exchange and other dealers did report a fair amount of trading on both sides of the market.
As of 11am CST the gold spot price was just under the opening price of $1338 per ounce. Gold fell by as much as $15 in the early trading hours before rebounding due to the heavy buying by safety-oriented investors. Certified gold market analysts had earlier predicted that while our government’s financial problems could translate into stagnant investing markets, some safe-haven buying was to be expected as more conservative investors shifted away from dollars and dollar-backed assets, such as bonds, and into assets that are generally considered to be more private and independent, such as certified U.S. gold coins.
Not only is the U.S. federal government facing a partial shutdown if a compromise cannot be made by tonight at midnight, but in just a couple of weeks the government’s borrowing limit will have been met, meaning that a debt level increase will need to be approved for the government to continue to borrow money to fund its various programs. For regular updates on the state of the certified gold coin market subscribe to our RSS feed and if you haven’t read Real Money Magazine yet get your complimentary copy below or by calling us directly at 800-300-0715 and asking one of our trained, non-commissioned advisers for free mail-out information.