Daily Gold Coin Update
March 20, 2009 - Gold is resuming its’asscent towards the $1000 mark in the wake of the Federal Reserve’s announcement on Wednesday, to invest $300 billion in long-term treasuries, to aid economic recovery. This proved to be good news for investors in collectable rare coins, since the devaluation of the dollar historically coincides with the rise in the spot price of gold. Curiously, for most of this year, this correlation has been virtually non-existent, but some analysts expect this correlation to resume, especially after the Fed’s announcement. Only minutes after the announcement in the early afternoon, gold went from $918 to $920. The trading day’s end saw gold reach the $950 price. Gold’s spot price was still holding strong this afternoon at $954. Conversely, projections for the dollar are speculative, if not pessimistic. James Moore, and analyst at The Bullion Desk.com in London, was quoted, “Given the actions of the Fed and other central banks, the dollar and various other currencies have lost their appeal as safe havens, potentially triggering further investment flows toward gold.”
Investors in collectable rare coins like $20 Saint Gaudens, $20 Liberty’s, and others can feel assured that their investment is a sound one, since overprinting of fiat currency has historically been favorable to gold investors. Buyers of collectable rare coins are especially poised to benefit from this latest overprinting, since the numismatic value of these coins also lends value to collectable rare coin investments. Gold is currently 7.6 percent below the record $1032.70 from a year ago. The precious metal is up 8.2 percent this year.
Danny Burns
Senior Staff Writer – Gold-Coin.com
