March 3, 2009 – Current spot prices are continuing to show downward fluctuation as a result of more prominent short-term profit taking being experienced in the market. Another major reason why current spot prices are dropping so quickly is because many investors are forced to sell their metal in order to balance out losses they have obtained from other more unstable investments such as stocks and bonds, which we all know have not been doing too well lately. Yesterday the Dow Jones Industrial Average fell to an 11-month low while the Standard & Poor’s 500 index fell to the lowest value seen since 1986. It seems like the majority of investments are witnessing some lower confidence by investors, yet precious metals are expected to rebound once their historically safe haven attributes become a necessity in the near future. Gold has been projected to outperform the majority of other investments, and this alone gives reason to believe that 2009 may be one of the most growth-inducing years for the metal.
The current spot prices for gold are at their seven-week low, at $915.20 per ounce, down $10.20 for the day and also down $68.30 for the last 365 trading days. Last year around this same time, the metal was preparing to hit its all-time record high, which was seen on March 17. Several market analysts believe that history might just repeat itself and that spot prices could reach higher than $1000 per ounce in the upcoming two weeks as there is no other investment at the moment that has the store of wealth potential of gold bars and coins.
Senior Staff Writer – Gold-Investment.info