January 28, 2009 – Gold and silver coin prices both fall today due to slightly lower demand in safe haven assets and short-term investors profiting from the quick surge that brought gold up 5.7% in the last three weeks. Today’s drop is the biggest drop we’ve seen here in two weeks and many are saying that it is being driven by the speculation that the global government measures to fix the economy will actually work and that safe haven assets will not be necessary at the moment. Many investors don’t understand that billions and even trillions of dollars will be pumped into a failed economy which could result in long-term inflation, which in turn means safe haven buying could increase dramatically and precious metals as well as gold and silver coin prices could go to significant highs. Some are sceptical as to whether or not these bailout plans will actually work and a recent survey show that 8/10 corporate chiefs are non-believers in the global stimulus injections. All we can do is hope for the best but prepare for the worst and diversify our portfolios correctly to prepare for anything.
Gold and silver coin prices are currently at a decline with the spot price of gold sitting at around $885.10 per ounce, down $12.60 for the day but still up four dollars in the last 30 days while silver fell five cents to around $11.99 per ounce. The latest projections for both metals are looking bullish and it is predicted that investors will flock to the market once again when news of more havoc in the economy continues to be shown. Invest well and have a great day.
Senior Staff Writer – GoldSilver.org