January 20, 2009 – Gold bullion coins spike in value today due to increased speculation that the global recession will continue to get worse, thus increasing investor interest in precious metals as a safe haven. Today as you may know President elect Barack Obama takes power as the 44th United States president and he is preparing a stimulus plan of over $800 billion that is supposed to bring new jobs and aid the economy during these tough times. Governments all around the world are trying their hardest to prevent further problems and yesterday the United Kingdom said that they would spend an additional $139 billion to stabilize their banking system. We’ve already spent about $1 trillion to help banks as the credit crisis continues to worsen and all these factors have brought positive fluctuation in the prices of gold bullion coins and other precious metals. Last year we saw a 5.5% gain and this year projections are saying that 10% to 20% is a very possible gain as the state of the economy continues to stand on shaky ground. What many people don’t understand is that all the money that is being injected into banks and failing companies will only result in higher inflation in the future which will in turn bring increases in the prices of gold bullion coins and bars.
Today we see gold trading in the area of $862 per ounce, up $20.20 for the day and up $24.70 for the month. This year’s projections are saying that we could see anywhere from $900-$2000 depending on the effects of government aid on the economy. No matter what happens, precious metal investors should be safe with a safe haven asset that thrives during times like this. Have a beautiful day and invest well!
