January 26, 2009 – The gold bullion spot price continues to shoot up to its three-month high as investors continue to rush to precious metals due to a weaker Dollar and falling stocks that historically signal safe haven appeal for the metals. Investors right now are purchasing heavily in order to preserve value and hedge their assets against all the problems that are happening in the economy right now, and of course to prevent further losses in the future as the United States Dollar continues to fall and the global recession deepens. President Barack Obama’s $825 billion stimulus plan will be a massive injection of cash into our banking system that could most likely drive the gold bullion spot price even higher. Even though people are feeling optimistic with a new president in office, it only makes sense that tons of cash pumped into a system that has already failed will only cause long-term inflation, thus increasing the value of precious metals.
Today were seeing the gold bullion spot price move opposite to the United States Dollar once again and it’s currently sitting at around $904.60, up $6.30 for the trading day and up $35.90 in the last 30 trading days. The latest price projections are saying that the record high could be surpassed this year and $1000-$2000 is a serious possibility, but it really all depends on the state of the economy after the projected stimulus plan kicks into full effect. Here’s for the best, invest well and have a beautiful day.
