Experienced investors know that when the price of gold bullion falls, it is usually a minor fluctuation that is brought on by profit taking from bullion sellers, as well as from possible gains by our U.S. dollar on the Index. Gold prices and dollar values historically move in opposite directions, but the dollar is presently competing with a comparably hemorrhaging euro, and not really gaining strength on its’ own merit. Greece’s fledgling economy is weighing down the euro, so investors shouldn’t place too much emphasis on the greenback’s reaching 81.2 on the Index today.

The gold spot price was $1114.40 at around noon EST, so even though mainstream media headlines may read that gold bullion falls, investors must maintain an objective perspective over economic developments, and decide for themselves where financial safety is optimal. Just last week, the gold spot price was below $1100 per troy-ounce levels, yet our Federal Reserve has yet to implement any notable action toward real economic recovery. Their latest strategy is to raise overnight lending rates between banks by .25% by the third quarter of this year, but such a measure will hardly mark the advent of a US economic turnaround.

Short-term profit seekers also know that when gold bullion falls, it is also an opportunity to capitalize on potential rebounds that the spot price invariably makes. 15 of 22 analysts surveyed at Bloomberg project gold to hit $1300 by year-end, so prospective bullion buyers are encouraged to thoroughly review their research.

Investors can also avoid paying outrageous retail prices for their bullion bars and coins by contacting one of our friendly specialists, who offer institutional discounts on these, and other precious metal items to household investors like you.

Jonathan Monroe