American Bullion -- The Safest Investment Is Physical Gold

Thursday, March 04, 2010 at 12:00pm

March 4, 2010, Los Angeles – Gold bullion prices closed off their recent highs due mainly to profit taking on Thursday. Investors are using this pullback as an opportunity to purchase physical Gold. Thursday's pullback comes one day after Gold reached a 6 1/2 week high. The U.S. dollar traded near steady on Thursday, while the Euro currency traded slightly lower.

Gold bullion continues to attract buying in the euro and British pound due to the ongoing debt crisis in Europe. "They're looking at a flight to safety there, or a store of value," said Frank Lesh, broker and futures analyst with Future Path Trading. "If you're holding euros, the risk is the euro is going down and you'd rather have your money somewhere at least stable."

In a press conference Thursday following the European Central Bank's decision to keep interest rates at 1 per cent for the thirteenth straight month, President Jean-Claude Trichet said, "The economic recovery in the euro area is on track, although it is likely to remain uneven." The bank president believes the euro zone economy will grow "at a moderate pace, in an environment marked by continued uncertainty."

He said he felt the new package of austerity measures announced this week by Athens was a positive sign and it was absurd to believe that Greece would be expelled from the EMU. Investors are awaiting the U.S. government's non-farm payrolls report due out on Friday. White House economic adviser, Larry Summers, released a statement on Monday concerning the statistics of the report being distorted by the blizzards that affected much of the country during February.

He suggested that we look past the figures and gauge the underlying trends. The trend I would like to gauge is the upward trend in Gold bullion prices. Jeff Nichols in a recent podcast says that he sees the possibility of $1500 Gold bullion prices this year, as global currencies continue to decline in their purchasing power. The safest investment is physical Gold, that's why smart investors are purchasing Gold coins on even the slightest corrections.