Daily Gold Coin Update
June 5, 2009 – The price of South African Krugerrand coins is headed in the downward direction today along with most gold coin prices that are seeing moderate declines based on a significantly stronger United States Dollar and speculation that is arising saying that the worst of the economic recession may be over. An interesting, yet humorous article from Bloomberg.com quoted that an economic recovery may be on the way, and that the overall demand for gold would decline as a direct result of this, yet what many market analysts do not understand is the increasing danger of hyperinflation that we could face down the road as a direct result of our excessive overprinting of dollars. Mainstream investment markets could lose significant portions of their value as they have done in the past during high inflationary periods, and contrary to these losses, the price of South African Krugerrand coins and other popular gold products may increase because historically, gold trades inversely to stocks and other dollar-backed assets. This being said, make sure you keep a close eye on all the major external economic factors that could cause fluctuation with gold in the short-term, such as the United States Dollar and global stock indexes.
By around 4 PM Eastern Standard Time, the price of South African Krugerrand coins along with other popular bullion products is declining, yet several investment-grade certified rare coins are holding on to their value as they typically do when sudden drops with the spot price occur. The current gold spot price is trading at $952.90 per ounce, down 2.82% for the day and up 6.35% in the last month.
Arthur McGuire
Senior Staff Writer - Gold-Coin.com
