Learn How Greek And US Problems Help Gold Coin Sales Directly At Gold-Coin.com
February 25, 2010 – Gold coin prices finished a strong day as Greek and American problems continued to underscore the problems faced by a growing number of national economies. Gold spot prices closed the day in the US at $1,107.80, a strong $9.20 per ounce higher. Gold began evening sessions steady, suggesting that gains on Thursday would hold or continue as morning trading began in the East.
After weathering the media storm of Federal Reserve Chairman Ben Bernanke’s trip to Congress to testify on the state of the economy, analysts began to look at the problems in Greece, the US and other countries for an indication of economic stability. Standard & Poor’s and Moody’s both indicated that they are preparing to downgrade Greece’s credit rating. "This morning Moody's warned that it may cut Greece's credit rating unless the government provides reassurances that it will not significantly deviate from plans to cut its budget deficit," said Jane Foley, research director at Forex.com.
The problems in the US are becoming more evident as well, with rising unemployment, dropping consumer confidence and record-low new home sales all making the news this week. The Fed is caught trying to keep interest rates low to stimulate the economy and avoiding a flood of new money into the market that it causes inflation.
For investors in gold coins and other assets, this economic instability is just another indication that now is a good time to add more of the precious metal to investment portfolios. Gold has a strong reputation as a hedge against economic difficulties, making it a secure asset to hold in light of the problems in Greece, the US and other countries.
Michael Williams
Senior Staff Writer - Gold-Coin.com
