Los Angeles, CA – A dramatic week of ups and downs in the market placed the value of Gold just above $1800 on Friday, an expected pull back/correction after a 13-week run of consecutive gains. The precious metal reached an all time high last week, pushing past $1900 over continued concerns of stagnation in the recovery of the U.S. economy, the potential rise in inflation and the European debt crisis. Later in the week gold pulled back almost 11% down into the $1700 mark after Federal Reserve Chairman Ben Bernake’s highly anticipated speech failed to give details on how the Reserve would help boost the economy. Bernake, while making mention that the reserve stands ready to use ‘additional tools’ to help the U.S. economy recover, made no mention of a quantitative easing (QE3) or any immediate Reserve intervention, causing uncertain investors to pull some of their money off the gold trading table.
Demand for gold still runs high despite the pull back in price. Currently the spot price of gold is around $1790 as investors and consumers in China are viewing the pull back in price a unique opportunity to buy in and capitalize on the profit potential over a longer-term. Additionally, central banks are now adding more gold to their reserves for the first time in a generation due to the global economic uncertainty.
More and more investors are using Gold as a hedge against inflation. From consumers to governments, investors at every level are buying gold to protect their wealth. The value of gold has risen continually for 11 years and many financial analysts are saying the gold will likely continue to rise beyond 2012.
Take advantage of the pull back in Gold prices; contact American Bullion to learn on how you can own physical gold for home delivery or to convert some of your paper-backed assets in your retirement account into a gold IRA. Call 1-800-326-9598 or email us here for more information.