Gold and the World Economy

6:52 PM PST, 6/16/2009

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2008 Queen Victoria Canada Vignettes Of Royalty .925 SILVER 30g High Relief

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Gold has always been considered a safe haven for wealth. Since earliest recorded times people used gold to signify wealth and to protect their wealth. Usually during economic crises and times of inflation gold rises in value. But lately the "spot" price of gold has been falling. Why is this happening? Free-Market governments around the world (the United States, Great Britain, France, Germany, etc) know that advancing gold prices can increase the nervousness of panic of investors. For several years these governments have been manipulating the price of gold and forcing the "spot" price lower to fool investors into keeping dollars, pounds, euros, etc, instead of converting their money to gold. This manipulation has created a gold market like none that has previously been seen. For example, we attended a regional coin show this weekend. The spot gold price was roughly $960 per ounce. However, a major coin dealer was going from dealer to dealer paying $30 over the "spot" price ($990). The $990 he was paying was actually the new "wholesale" or dealer-to-dealer price. Add a normal retail mark-up (25-35%) and you have gold selling for $1160 to $1255 per ounce. This just happens to be the price many commodoties dealers have said that gold will reach by the end of December 2009. Gold continues to be a good place of value to protect your wealth. We will continue this dialogue as economic events occur. We look forward to your comments and ideas.

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