Daily Gold Coin Update
April 1, 2009 – Wise American cash investors have begun to compare their savings rate with the percentage increases that gold has been making every year, and thus many of them are diversifying their paper dollars into something that actually has value. In the last few years, consumer goods have been increasing significantly, which is a sign that inflation is growing at a frightening rate. Even an investor with a 4% savings rate could actually be losing money every year as a result of their dollars becoming devalued. Preservation of spending power should be priority at the moment, especially since inflation is only expected to get worse in the future. Fortunately, investors have the ability to diversify into gold that historically acts as a hedge against inflation, and could even be a solid profit taking tool if upward fluctuation continues. It’s no surprise that the metal is currently on an upward trend, and in the past eight years it has increased in value by more than 300%, proving that the metal can overcome a cash-backed account with a 3% savings rate.
Today the gold spot price is increasing for the second day in a row, and gains are limited due to fluctuation with equities and the United States Dollar, still the metal trades at $920.30 per ounce, spiking up .25% for the trading day yet still dropping .55% in the last 30 trading days. More financial institutions are beginning to update their yearly projections for the metal, and one of the latest updates come from Morgan Stanley that increased their forecast by 11% to $1000 per ounce. Happy investing.
Arthur McGuire
Senior Staff Writer – Gold-Coin.com
