February 25, 2009 – Many long-term investors took advantage of yesterday’s lower than usual precious metal prices by the horns and began buying gold bullion in order to benefit from the potential spikes in value that could occur in the coming weeks and months, and of course the record high price that is predicted to be surpassed very soon. Several market analysts expected a sharp decline in the gold spot price and even though we saw some small drops in the last two days, today’s prices continue to increase as a result of the higher long-term safe haven demand. What we are experiencing right now is considered a tug-of-war between precious metal and equity markets and the most interesting part about it is that stocks are in serious danger of becoming devalued as a result of a weakening United States Dollar that could burst at any given moment. These unstable stock markets are one of the main determining factors why wise investors are buying gold bullion at the moment.
Today during the midday trading hours, investors are beginning their rally of buying gold bullion, and the spot price of the metal has already risen to $973.50 per ounce, up $10.80 for the trading day and also up $71.20 in the last 30 trading days. Any further weakness in other investing markets could bring prices even higher than they are right now and into the $1000 per ounce benchmark once again. Let’s hope that the record high of $1033 per ounce becomes a thing of the past with a new record high. I wish you the best of luck when investing in precious metals.
