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End of year opportunity for gold coins.

December 07, 2010 – With gold prices sitting around record highs how can this be a good time to buy gold coins? The specter of extended QE2 bond buyouts risen by Ben Bernanke on 60 Minutes has a lot to do with it.

The last thing foreign leaders and domestic economists wanted to hear was that the Fed was even thinking about extending that highly volatile policy. Mr. Bernanke offered only a brush- off to foreign concerns over worsening their already weakened trade positions and to domestic economists who fear such a move could tip the scales towards runaway inflation.

While it would be nice to believe that unemployment will fully recover in four to five years, as does Mr. Bernanke, the data indicate that it will likely take much longer. And if that were the case, Bernanke concedes, then a slide back into recession becomes a distinct possibility.

In the absence of any real good news, investors turned to gold in droves Monday despite Bernanke’s assurances that he and the Fed were in total control and would instantly leap into action to curtail any undesirable price movements.

Naturally, whenever gold reaches new highs it meets growing resistance, but according to Afshin Nabavi, head of trading and physical sales at MKS Finance, as cited in the Wall Street Journal, that will likely break soon and we could see gold reach $1450 or even $1500 during the usually quiet trading activity at year’s end.

As big investors sit back with a ‘wait and see’ attitude it presents an excellent opportunity to buy gold coins. Barring some economic miracle the market is expected to take off in earnest again with the new year, taking gold prices to new record levels.

Kevin Johnson

Senior Staff Writer – GoldCoin.net

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