Daily Gold Eagle Update

July 20, 2009 – Wise American investors are flocking back into the gold market today, and it appears that many of them are purchasing the modern day $50 gold Eagle coins that have become the most popular bullion coinages in circulation at the moment. Today’s higher safe haven demand has pushed the gold spot price to $949.80 per ounce, increasing $12.10 for the trading day, and also increasing $16.10 in the last 30 trading days.

According to several market analysts, the main reason why so many investors are flocking to $50 gold Eagle coins and other popular precious metal products is due to the latest optimism of an “economic recovery” that could mean significantly high inflation by the end of the year. The United States Federal Reserve has already mentioned that they may increase interest rates before 2010, and this is causing many investors to fear that we could face a similar inflationary environment as was last seen in 1978. For those investors who don’t know what happened during this pivotal time in history, rising inflation and spiking interest rates created exponential safe haven demand as masses of Americans began purchasing gold as their ultimate hedge from a devaluing dollar and contracting stock indexes. The gold spot price increased more than 800% between 1978 and 1980, proving its potential as a safe haven asset that could thrive during times of significant economic danger. Fortunately, modern-day investors are now purchasing coins like the $50 gold Eagle in order to potentially protect themselves from the uncertainties that lie ahead in this financial storm.

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Joshua Harris

Senior Staff Writer - Gold-Eagle.org