Gold price plateau could present opportunity to investors

Thursday, February 11, 2010
Now may be a good time to invest in gold coins.
- By John March
People who may want to invest in gold coins may have a window of opportunity to get in at a good price as a result of some recent momentum from the dollar in light of a shaky European Union financial situation.

In fact, a recent Reuters report says that gold is likely to remain high in the long term due to concerns over inflation and stability of paper currencies, but in the medium term is seen at more of a price plateau because the dollar's recent activity and a drop in demand for products like jewelry.

"We see a number of headwinds for investors in gold, most notably potential increases in rates. The opportunity cost of investing in commodities is going to be important," the wire service quoted analyst Daniel Major or RBS Banking & Markets as saying.

A number of mining companies are also seen as increasing their output, notes Reuters, in response to the upward trend in prices, but concern about falling prices should largely be eased by a trend of shaky currencies.

Fueling much of the concern about various currencies not linked to commodities will be sovereign debt levels, which have been earning a considerable share of financial news headlines in recent days.


John March is the Chief Technical Officer for the Superior Gold Group, his financial insights on precious metals are sought after by Gold & Silver Dealers globally.

If you have any questions about how to buy gold coins, and want to learn how to grow your portfolio call 888.374.4032 or write to askjohn@gold101.com.
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