Gold Price Level Encourages Bullish Investors to Reestablish Positions
The United States Federal Reserve was twisting again, like it did last summer. Just like the lyrics of the popular song, the Federal Reserve was back in the treasury market last week snatching up long term bonds to push the rates lower.
The lower rates had some investors thinking deflation around the corner. Because of this, they pushed the price of gold lower for the week to close at the $1568.70 level. At Global Gold Group, we see this move as short sighted.
The fact is the Federal Reserve is printing dollars to purchase these bonds. In the short term, the dollars purchasing the treasury bonds will push rates lower. However most gold buyers are missing the fact that in the long term, those dollars will need to be accounted for. That means that the Federal Reserve is actually adding to the inflation threat by printing dollars in the long term. That’s a bullish sign for the long term future price of gold coins and gold bullion.
Therefore we recommend that investors take a look at buying gold coins or investing in gold bullion for the long term. For more information about investing in gold, don’t forget to check out the free information on our website about buying gold at www.aglobalcurrency.com.Leave a comment and / or appreciate the article!
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Posted by: Daniel Ioan Notar *DJ_DANY*
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