Seasoned precious metals investors realize that the concept of “peaking gold prices” is purely a matter of perspective. We’ve all witnessed the gold spot price (which represents the cost of one troy-ounce of pure gold) spontaneously plummet, as well as reach new all-time record highs. The last record high was reached early last December, when the spot price hit $1222.56, so many individuals consider any prices near that level to be peaking gold prices.
Conversely, many who look at today’s gold market consider today’s prices as peaking gold prices. Gold investing is so scrutinized by the mainstream media, even being called a “barbaric relic” and an “outdated investment” by some pundits. If gold has already peaked, then now may be a good time to liquidate your holdings.
However, even though peaking gold prices are seen in long-term trends, they are also seen every day, month, and every year. The gold spot price low today was $1087.70, but climbed as high as $1110.50 per troy-ounce in the early afternoon. It was hovering at $1105.90 at around 3:00 pm EST, with no drastic changes so far, resulting from Ben Bernanke’s congressional testimony this afternoon. Many suspected Bernanke to finally announce interest rate hikes, but instead focused on possible corporate misdoings that surround Greece’s economic troubles.
Economists like Richard Maybury and Peter Schif have repeatedly called for the Federal Reserve to raise interest rates, and by the time interest rates are at appropriate levels it could be too late to neutralize inflation. In the 1980s, gold rose over 900% as interest rates went from 4% to 12%, so today’s big fat goose egg of an interest rate leaves but one direction to travel.
Those who are seeking financial safety through a physical gold purchase are encouraged to contact one of our friendly specialists, who offer institutional discounts on bullion, and certified rare gold coin to household investors like you.
Ronald Stevens
Tags: Peaking Gold Prices, Surging Gold Prices
