Daily Gold Coin Update
June 3, 2009 – The price of American Eagles fluctuates on a daily basis based on the spot price of gold, which happens to be falling today because of a stronger United States Dollar. Historically, the price of American Eagles and the dollar trade in inverse directions, and this generally means that when American Eagles are increasing in value, the dollar decreases in value and vice versa. The dollar is officially recovering from major losses that were seen in the past few weeks, and market analysts are saying that this is occurring based on the simple fact that Asian financial institutions have reported that they would continue buying United States Treasuries even if our A+ credit rating was cut. This has created short-term sentiment that the dollar is the way to go, yet many investors don’t understand the inflationary pressures that may hammer away at the fiat currency down the road after our excessive overprinting and quantitative easing measures that have been considered “overdone.” Fortunately, we could see significantly higher gold spot prices down the road if the dollar continues losing value again because investors usually flock to the metal as their ultimate hedge from both inflationary and deflationary economic environments.
By around 3 PM Eastern Standard Time, the price of American Eagles in both bullion and certified rare varieties is taking a minor step back with the daily market spot price that has fallen to $961.10 per ounce, decreasing 2.04% for the trading day yet increasing 9.05% in the last 365 trading days.
Arthur McGuire
Senior Staff Writer - Gold-Coin.com
