American Bullion -- Gold Bullion The Perfect Currency Hedge

Monday, July 26, 2010 at 06:30am

July 26, 2010, Los Angeles – The price of Gold closed slightly lower on Friday but was unchanged versus the Dollar for the week while Silver prices ended the week 1.9 per cent higher. Gold bullion continues to appeal to investors as a hedge against currency volatility as well as a safe haven asset.

"Every single person out there should own some gold," said celebrity analyst and money manager Jim Cramer. A disappointing U.S. housing indicator report offered evidence that the economy lost some steam in the second quarter.

Bernanke's semiannual Congressional report on the economy on Wednesday fell short of delivering to the markets what they were hoping for, which was any new measures, as some economists have been calling for, to bolster the fragile recovery.

"Even as the Federal Reserve continues prudent planning for the ultimate withdrawal of monetary policy accommodation, we also recognize that the economic outlook remains unusually uncertain," Bernanke said.

He then reiterated his pledge to keep benchmark interest rates at their present near zero levels and went on to say the Fed stands ready to act if needed to save the recovery. Bernanke said on Thursday that he is in favor of extending the tax cuts passed by former President George W. Bush to add stimulus to the economy.

President Barack Obama on Wednesday signed into law the most sweeping overhaul of financial regulations in almost a century. The new regulations are designed to ensure economic stability, to both Main Street and Wall Street.

The US Dollar index fell for the week along with Treasury bonds, as the Dow, Nasdaq, and S&P stock indices rose about one per cent on Friday afternoon. Gold coins and Gold bars have been the astute investor’s choice as trust in the European banking sector continues to diminish following unconvincing stress test results to end the week.

The stress test's strictness was called into question by both analysts and investors when it was disclosed that a majority of the the bank's holdings of sovereign debt was being ignored. The stress tests took into account potential losses on only the government bonds the banks trade not the bonds being held until maturity.

Investors will be watching for the following reports due out this week: New US Home Sales on Monday; Consumer Confidence on Tuesday; Durable Goods Orders on Wednesday; Initial Jobless Claims on Thursday; GDP and the Employment Cost Index on Friday.

With governments struggling to service their debt and currencies deteriorating, physical Gold is the perfect hedge. Invest in physical Gold and Silver.