News Header

 

Economic Conditions Ripe for Higher Gold Prices

Release Date: 
Friday, September 10, 2010

Economic Conditions Ripe for Higher Gold Prices

Sep. 10, 2010

While the Great Recession has come to an end, investors continue to acquire gold - leading to record-breaking prices that have been making news in recent days.

"[Low interest rates] would be, in our view, supportive for further strength in investment flows moving into precious metals and gold in particular," Stefan Graber, an analyst with Credit Suisse, told Bloomberg News.

A few weeks ago, a report from the National Bureau of Economic Research (NBER) noted that the recession began in December 2007 and came to an end in June of 2009. Since then, many observers have warned that the economy could suffer a double-dip recession based on factors like anemic job growth, unchecked federal deficits and weak consumer spending.

At 18 months, the recession was the longest on record since World War II, and for many, a recovery will not be a reality until more jobs are available.

However, the NBER report this week said that any return to negative growth would actually mark the start of a new recession as opposed to a double dip. The report also pointed out that the economy has not "returned to normal operating capacity," which has been evident in a number of recent economic statistics.

The price of spot gold in part reflects the current economic uncertainty, with prices trading around $1,270 per ounce in recent days. Some investors may be heeding former Fed chairman Alan Greenspan's comments that gold prices are "the canary in the coal mine" and that "fiat money has no place to go but gold."

This news article is independently provided by Brafton and does not represent the views or opinions of Goldline International, Inc. Although the information in this news alert has been obtained from sources believed to be reliable, Goldline does not guarĀ­antee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

News Footer

 

†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage.

To receive free information package on gold and precious metals investing, call Goldline at 1-800-963-9798.