At the risk of leaning on a cliché so close to Valentine’s Day, gold’s relationship with the U.S. dollar can accurately be described as a “love/hate”, since gold does back the value of the dollar, but dollar values and gold prices generally behave oppositely to each other. This inverse correlation is repeatedly reflected in economic developments on a daily basis, but it requires stealthy interpretation, as U.S. dollars are scattered throughout virtually every economy on the globe.

For example, Greece’s suffering economy has been in the international limelight over the past few days, as European Unions are working to aid their Mediterranean neighbor. This consolidated effort, along with Germany’s stalled economy, has applied downward pressure on the euro. This strain on the euro has assisted our nation’s currency slightly on the Index, but gold’s relationship with the U.S. dollar remains tried yet true, as the spot price climbed to $1092.70 per troy-ounce today, before leveling off to $1086 prices late in the afternoon.

Since there remains so much work yet to be done on our home front’s economy, many U.S. investors remain speculative on our financial markets. Some of these trend savvy investors are looking to capitalize on gold’s relationship with the U.S. dollar, by either using gold bullion as a short-term, potential profit vehicle, as a diversification for long-term, rare gold coin investments, or as government-approved, gold-backed IRA contributions.

Resourceful investors can avoid paying over marked retail prices for their precious metals by contacting one of our friendly specialists, who offer institutional discounts on bullion, and rare gold coin to household investors like you.

Jonathan Monroe