Wise investors typically purchase gold coins as a hedge from deflationary or inflationary economic environments, and today we’re seeing moderately higher safe haven demand because market analysts are saying that we are currently facing short-term deflation, with potential to see long-term inflation down the road. The latest economic data is showing that the United States Consumer Price Index has only seen minor inflation, with prices only increasing .1% for the month of May. Several market analysts are predicting that interest rates may remain low for the time being if the current economic conditions persist. Despite the latest comments from the United States Federal Reserve saying that the economy is on its way to a recovery, external economic factors are still proving that we are facing a dangerous financial crisis, with prices increasing slowly but surely all around us, unemployment approaching 10% nationwide and long-term inflationary fears looking a lot worse than many people expected. All of this should come as no surprise, especially since our excessive overprinting of dollars and massive quantitative easing measures have only proven to create a short-term solution. Investors worried about the long-term could protect themselves by deciding to purchase gold coins before it’s too late, because historically the metal thrives during inflationary periods.
By around 11:45 AM Eastern Standard Time, it appears that the demand for gold is increasing as more investors are deciding to purchase gold coins as their ultimate hedge from long-term problems, and this heightened demand has pushed the spot price up to $935.10 per ounce, increasing $.30 for the trading day and also increasing $17.40 in the last 30 trading days.
John Halloran
Senior Gold Specialist - Buy-Gold.org
