October 15, 2009

October 15, 2009 – Gold and silver prices pulled back slightly on Thursday morning, as the last two weeks of strong gains in the bullion market convinced a significant amount of investors to convert those assets to certified gold and silver coins. The US Department of Labor reported today that inflationary pressures on our dollar edged up only 0.2% last month, fueling many economists’ theory that long-term inflation is the real danger for US investors. Many Wall Street economists, commodities experts, and this writer, predicted last week that a pullback would soon be seen. The gold price has repeatedly broken all-time highs during the last two weeks, so a certain amount of correction was due. Many gold prognosticators believe that the yellow metal could reach $1400 per ounce by 2011, and silver is projected to surpass $25 per ounce within the next two years.

There are a few analysts who believe that gold has reached the peak of peaks, and they have suggested that gold owners liquidate those assets immediately. Long-term investors have no intention of doing this, since they buy gold for security as much as for profit potential. Some gold bullion investors who originally intended to hold their gold short-term have decided against that course of action, because the profits that they could have used for holiday shopping may be better suited in the certified gold and silver coin market. Bullion prices fluctuate in a wider daily range than certified coins, so investors who happen to buy gold or silver bullion on a peak may wait some time to earn profits. While a rapidly increasing gold spot price looks attractive, it can provoke profit-taking, and some gold bullion investors have caught their fingers in a mousetrap by missing an opportune time to release those short-term assets. Certified coins allow investors to control their wealth first hand, without having to micromanage it every minute of the day.

Bullion items and certified gold and silver coins serve their own specific purpose, so investors who are new to the precious metal market are encouraged to do their due diligence on the different types of gold and silver, and it is also advisable to investigate any potential gold exchange’s reputation at The active gold price is $1050.10 and silver is valued at $17.32 per ounce at 4pm EST. 

Shannon King

Senior Staff Writer –

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