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April 23, 2009 - Spot prices are increasing today for the second consecutive session, supported by a spike in Indian jewelry demand and global safe haven investment demand. In the past few weeks, we have seen an inverse correlation between United States equities and spot prices, and this correlation continues today as stocks begin to diminish and precious metals begin restoring their former glory as one of the ideal investments to own during times of economic crisis. Also, gold imports by India, who is the world’s largest consumer of the metal may more than double this month based on a large-scale bargain hunting opportunity, especially since so many projections are expecting $1500 per ounce by the end of the year. A nearly doubling spot price would basically mean a massive shift to precious metals because of an overall lower confidence in fiat currencies and equities that are bound to become devalued down the road by either deflationary or inflationary pressures. Fortunately, wise investors can diversify their portfolio into safe haven assets that historically react extremely well during these havoc-filled economic times.

By around 3 PM Eastern Standard Time, it appears that more and more investors are still turning to gold as the shelter from the storm ahead, and spot prices are currently at $906.30 per ounce, jumping up $15.60 or 1.75% for the trading session, which brings the metal up to a three-week high. Short-term projections are saying that any further negative economic data may create so much conflicting sentiment about the future of this financial crisis that we may even see a record high much sooner than we expected.

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Arthur McGuire

Senior Staff Writer – Gold-Investment.info