September 21, 2009 - The price to buy one ounce of gold bullion dropped immediately from opening levels on Monday, before bouncing back in early afternoon trading. Gold bullion is most frequently sought after by dentists, jewelers, and short-term investors who do not hold the collapse of the Dollar as a possibility. The mild price drop was attributed by economists to a bill that was introduced to Congress that would allow for unemployment benefits to be extended from 26 weeks to 39 weeks, adding another three months worth of checks onto the bottom line.
Rep. Jim McDermott, a Washington Democrat, offered the bill that could give over 15 million unemployed Americans three months of extra benefits. There are currently six jobless people for every one job opening, and this ratio is expected to get bigger as businesses close and factories move overseas. Some analysts thought that the introduction of this bill would cause the gold price to jump up, as it usually does when mainstream financial news, like high unemployment rates, is bad. However, experts believe that more investors are shying away from gold and silver bullion, and instead they are purchasing certified precious metals products. Financial news that could hurt the economy, such as extending unemployment benefits by 50%, increases the chance that gold and silver bullion could be confiscated, thereby decreasing the number of individuals who buy it. Coinage that has been certified by the Professional Coin Grading Service and the Numismatic Guaranty Corporation would not have been taken in the last gold confiscation issued by President Roosevelt in 1933.
Gold bullion is sold in grams and troy ounces, and the gold spot price is based on 1000 ounce COMEX bars before they are melted down into bars, coins, or jewelry. The active spot price at www.goldprice.net for one ounce of gold bullion is $1004.30 on 3pm EST. This is a 0.3% decrease for the trading day, and a 6.56% increase over the last 30 days.
