American Bullion -- Gold Bullion Is The Ultimate Safe Haven

Thursday, February 04, 2010 at 12:00pm

Gold bullion prices eased a bit on Wednesday after a two day rally in precious metals. Smart investors are using each small pullback in the price of gold bullion to buy physical gold. The dollar got a boost on Wednesday when a report by ADP Employer Services revealed that private employers experienced the smallest payroll decline in almost two years and adding to the positive news for the dollar, the U.S. services sector even showed slight growth.

Additional factors helping to lift the greenback against the euro were growing concerns about the debt of several European countries like Greece for instance.  There was growing concern with Spain and Portugal s growing debt, as well as fear that they could be the next euro zone countries to face a crisis. China’s stricter lending policies and speculation that US interest rates could rise, all worked in favor of a stronger greenback.  There is still a very positive outlook for gold bullion prices in the near future.

Speaking by podcast, Sprott Asset Management's chief investment strategist John Embry, explains his view on the next direction in gold bullion prices when he said, "Gold had a 300 dollar plus run in US dollars from July into the early part of December and it has come under heavy pressure subsequently. It certainly has engendered immense bearishness amongst the commentators which is actually good from my perspective. I think the fundamentals are undisturbed and as a result it is setting up for another strong buy."

Investors are remaining very cautious just days before the Bureau of Labor Statistics releases its estimate of January nonfarm payrolls, but gold bullion prices are now being viewed as a fair value, and this may be a good time to join the many bargain hunters in gold bullion. Many traders and investors are looking for gold bullion prices to continue trending upward. Buying physical gold still has two indisputable characteristics, safety and liquidity. Whether you buy gold bullion in gold bars or gold coins, gold bullion is the ultimate safe haven.