Two weeks ago, the price was at a peak: $1011 per ounce. It was a heady time as one analyst predicted that the price “could go as high as $5000 per ounce” in the unsteady market. I must admit, I reported that here in the gold prices section of the blog because I enjoy watching the wild swings of so-called “experts.”
Gold, as we’ve discussed many times here, is seen as a hedge against inflation and a stable shelter from a market that is unsteady. It’s a place to put cash that will retain its value and in very uncertain times, even grow. You can easily understand why its a point of heavy interest during an economic recession such as the one we have just experienced.
In the last month, the price jumped on news about the economy. First the price seemed to ease back. That was on reaction to the head of the Federal Reserve suggesting that the recession was over. The markets seemed to lap that up like a cat with a saucer of milk.
Then the news about unemployment. We seemed to be having a “jobless recovery.” That is a situation where the American economy moves forward, begins to expand and grow again, but companies are producing more without calling employees back to work or making additional hires. The Fed Chairman allowed that “jobs will lag behind,” but this time of “recovery” is discomfiting to most people watching the markets. And the price of gold went up.
Now economic news seems to show some stability. And the price softens just a little.
It does somewhat hit you where you live, if you live in a jewelry store. Prices at ApplesofGold.com have held fairly steady through this. But what if the price did spike again? And what if it spiked more than a few dollars?
Apples of Gold prefers to hold its prices steady. Like most merchants, we’d like to offer high quality product as reasonable prices and serve our customers needs and desires. If the price of gold skyrockets, if it perhaps doubled, then yes, the prices would reflect that. So while it’s enjoyable to report on speculative talk from imaginative “experts” on gold, we are glad to see the price trending downward again.
And we hope you are enjoying that view as well.
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Category: Gold Prices