Economy Up? Gold Prices Down!
August 3, 2009 by Martha Rooks
If you’ve been watching the markets and the news reports just lately, you know what this blog is about: the economy may be stabilizing, the dollar is also seeing some brightness, and the price of gold is edging downward. It’s a delicate dance that our financial markets and system honor.
“The yellow metal and the greenback have been executing a close tango for the past couple of weeks now, and weakness in the latter has translated into persistent bumping ups against the $957 resistence area in the former, wrote Kitco Metals analyst, Jon Nadler.
Earlier this year, it was projected that by September or October, the price of gold would hit $1000 per ounce. It closed in on that much quicker than anyone predicted, which drew thousands of happy sellers to bring out “Old Aunt Nettie’s brooch” to gold buying companies. But then it started to inch downward again.
It’s all good news for the average American gold buyer. The economy is steadying and some optimists are even going so far as to suggest that the recovery is just around the corner. So what happens then? The dollar begins to steady and the price of gold begins to inch downward again. Meantime, consumers begin to feel a tiny bit better and start to spend money, including buying jewelry and gold pieces because, well, they’re feeling so cheerful that they’re ready to put a few more dollars into gift giving and special occasions.
Economists have said that any recovery from this recession will not be driven by consumers. That’s an interesting statement, isn’t it? Because that’s who we see coming to the rescue of the economy. Consumers are turning out in droves for the “Cash for Clunkers” program and home sales are inching upwards again. Where does all this come from? Consumers.
Gold jewelry was always a great deal, but now more than ever, the value that lasts is the value that you want to bring home.
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