September 18, 2013 - Gold bullion prices have fallen steadily in recent weeks as factors such as profit-taking and a seemingly stronger U.S. dollar have taken their toll on the yellow metal that was once valued at more than $1900 per ounce, but one particular sector of investors have kept gold bullion prices afloat. Gold bullion bargain-hunters often dismiss lower gold prices as ploys by governments, central banks and firms with other motives to influence investors to place funds in mainstream investments instead of precious metals, and lately these bargain-hunters have “put their money where their mouth is” by scooping up much of the bullion that recently hit the market when gold fell from above $1400 per ounce to today’s comparatively low $1312 per ounce.
The gold bullion spot price remained steady in the $1310-$1315 range throughout most of the trading day Tuesday, with gold bullion bars and American gold Eagles the leading sellers for most U.S. gold bullion dealers. Bullion has taken some heat recently because of its apparent vulnerability to government confiscation (gold bullion was deemed illegal by the U.S. federal government in 1933 and retained that status until the United States left the Gold Standard in the 1970s) but some gold buyers have chosen to ignore the eerily similar circumstances between the Great Depression and the U.S. economy of today.
Instead, these investors use mattresses, coffee cans and gun safes to protect their gold bullion. If the United States imposed a ban on gold bullion hoarding then it is unlikely that forced confiscation would be a reality, but since no one could legally use the gold these investors could end up sitting on worthless gold, a unfortunate fate experienced by many in the 1930s. In the meantime, however, gold bullion buyers are keeping the gold spot price afloat and showing the world that something’s worth in U.S. dollars is not always the end-all, beat-all decision-maker.
Daily Updates Archive
Jonathan Monroe
Senior Staff Writer - Gold-Bullion.org
