, IncNovember 19, 2009 – Today’s gold price is of special note because the Commodities Exchange (COMEX) raised the gold spot price to a record-high $1153 per ounce yesterday. Just a few weeks ago, many investors were wondering if gold would be able to break through the $1000 per ounce barrier, and the continuous climb of the gold spot price since that time has silenced many gold bug critics.
Unlike the Dow Jones Industrial Average, which has fallen drastically since revisiting 10,000 in September, the gold spot price has relentlessly risen since crossing the historic $1000 milestone. Today’s gold price is slightly lower than the historic high of $1153 per ounce, because some short-term investors decided to jump to the sidelines and take profits on their position.
Short-term investors who buy bullion sometimes liquidate their position when they see the gold spot price start to decline, but they do this only when they are positive that a strong valley will soon manifest itself. Buying and selling in quick increments means that traders have to re-pay bullion premiums and commissions, so it requires a keen eye on the gold market to make money with rapid-fire gold bullion trading.
Although gold bullion investors may be able to reap extra profits by exiting the market when a slight pullback occurs, long-term investors are better off sitting on their position until our economy shows signs of improvement. Gold bullion could be an excellent way to make profits if short-term inflation flares up, but investors who plan on a long-term hold are likely to do better financially with certified gold coins.
These coins track the gold spot price that is listed on www.Kitco.com and www.GoldPrice.net, but they also contain a numismatic value that has caused our government to deem these rarities non-confiscatable. If you are concerned that our dollar and our nation are up against long-term troubles that run much deeper than simple inflation, contact us today to protect your portfolio before our economy devolves further.
Stewart Lawson
Senior Staff Writer - GoldPrice.net
