March 17, 2009 – Many investors around the country have sparked their bargain-hunting instinct and are deciding to buy gold while the prices are at their monthly low due to rallies in other financial markets. Earlier in the day, the United States Commerce Department reported that housing starts spiked up 22% last month, and this news along with Ben Bernanke saying that the recession is nearly over have caused increased confidence with those looking to invest in stocks and the United States Dollar. If we simply look at the big picture, we can see that gold has increased in value 4.5% this year while the majority of stocks have dropped between 15% and 17%. Investors are currently experiencing negative correlation with the metal and equities which is common especially during these historically unstable times. Fortunately, those who buy gold could reap the benefits that they offer which have been projected to outperform those offered by other investing markets. 2009 has shown many surprises for precious metal investors so far, the question is, when will they surpass their record highs?
The recently lower spot prices could signal an ideal time to buy gold and silver, and currently gold is sitting at around $915.40 per ounce while silver sits at around $12.67 per ounce, both declining a bit for the day. For those who were active in the market last year, you probably remember that March 17, 2008 was a historical day for gold, as it achieved its all-time high of $1033 per ounce.
Senior Staff Writer – GoldSilver.org