, IncNovember 30, 2009 – Gold price drops were seen on major exchanges today after the gold spot price’s rally stalled temporarily. Although the gold spot price could lay dormant in December because of holiday shopping, economists believe that United States retailers will suffer through their third consecutive slow holiday season.
Now is not the time to splurge uncontrollably on gifts for yourself or others, because the US economy is on the brink of collapse and no one knows how our nation’s financial situation will change in the coming months. After shooting to $1183 last week, the gold spot price declined to $1173.20 by noon EST today.
Gold price drops on the Commodities Exchange (COMEX) were caused, not by a strengthening of US currency, but by investors who decided to liquidate their gold holdings and convert back to cash. Gold bullion prices were repressed this morning because bullion bars and coins fluctuate exclusively based on the COMEX gold spot price. Certified gold coins retreated slightly because of their inherent gold content, but demand for non-confiscatable assets like certified gold coins remains high, as it has throughout our recession.
If you are considering a gold investment, it is advisable to take your position in the gold market before the repression of the gold spot price reverses. Once our economy regains solid footing and the dollar starts to increase in value in the eyes of international investors, the gold price will likely continue to drop. However, key financial institutions like JP Morgan and Merrill Lynch have called for the gold spot price to increase 12-18% in 2010, so gold price drops that were seen today will likely be corrected soon.
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Stewart Lawson
Senior Staff Writer - GoldPrice.net
