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May 29, 2009 - The United States Dollar is floundering, stock markets are failing and masses of wise investors are deciding to buy gold coins now before it’s too late, but the real question is, should you buy gold coins? Just like every other investment out there, some diversifications are better for some people than others, and this is why it is always highly recommended that you fully analyze your investment goals and needs before purchasing any type of investment. Typically, investors buy gold coins as a hedge from both inflation and deflation along with losses that may be experienced in mainstream financial markets. The reason this happens is because historically, the metal trades inversely to the United States Dollar and stocks, and we’re seeing this exact type of market movement today as the fiat currency and mainstream financial markets lose value while the gold spot price climbs to a three-month high, officially breaching the $975 per ounce resistance level. Short-term market projections are saying that investors may continue flocking to the metal if the economy contracts any further.

By around 2:15 PM Eastern Standard Time, the overall demand for gold is rising at an impressive pace, and it appears like last weeks’ Bloomberg projections were correct, especially since the majority of them said that spot prices would extend gains this week as the dollar floundered. The spot price of the metal is currently sitting at $977 per ounce, moving up 1.88% for the day and also moving up 8.76% in the last 30 days.

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Arthur McGuire

Senior Staff Writer - Gold-Investment.info