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April 3, 2009 - Precious metals funds in the bullion varieties are losing value today due to speculation that the United States economy may recover from this financial crisis as a result of trillions of dollars being pumped into our economic system. Yesterday’s G20 meeting in London resulted in a global plan to inject $1 trillion of emergency aid in order to protect further downfalls. This has created sentiment that things could get better, yet in reality people are not considering the frightening inflation that is slowly beginning to creep on us. Stock investments in the short-term could see considerable fluctuation as safe haven demand for precious metals funds increases due to massive risk aversion worries. American investors have lost billions of dollars in the last eight years as a result of failing corporations, a shattered real estate market and a devalued currency. Fortunately, the wise few who begin precious metals funds in bullion and certified coins could hedge themselves from further severe problems that may lie ahead for all of us.

During the midday trading hours, it seems like the gold spot price is losing a bit of value as the temporary cloud of confidence creates the illusion that the United States is recovering. The metal is currently trading at $895.60 per ounce, down $8.40 for the trading day and also down $8.40 in the last 365 trading days. Today marks the second weekly loss for the metal, yet market analysts believe that a serious rebound is underway next week, so this may be a good opportunity to purchase while spot prices are lower than expected. Invest well.

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Arthur McGuire

Senior Staff Writer –-Investment.info