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April 10, 2009 - Gold investment prices are closing the week off on their third weekly decline as many Americans are feeling confident with the United States stock market, and thus they are beginning to purchase shares that could become devalued down the road, according to George Soros and Marc Faber. An interestingly article on Reuters.com noted that the recent short-term movement with financial markets is based on optimistic and pessimistic investors. The optimistic investors feel that the recession could be at an end, and thus they are investing in stocks as opposed to safe haven assets while the pessimistic investors feel that the recession will continue to worsen, possibly into the second Great Depression, and thus they are investing in safe haven assets as opposed to stocks and bonds. This has been occurring heavily in the past few weeks, and it’s most likely the reason why several stock indexes have increased in value more than 20% since the beginning of the month while gold investment prices have fallen about 6%. Don’t let the short-term movement fool you, especially since so many financial institutions and market analyst believe that a powerful rebound is imminent for precious metals.

Gold investment prices are falling yet again, although they’re not seeing any heavy losses due to lingering safe haven demand that has the metal trading at around $877.90 per ounce, a decrease of .24% for the trading day and also a decrease of 2.16% in the last 30 trading days. Spot prices could remain under pressure in the next few days, so this could be a good opportunity to take advantage of the market before the expected rebound occurs.

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Arthur McGuire

Senior Staff Writer –-Investment.info