Wednesday, 07 May 2014 20:57

Coin Market Activity Increases as Gold Fluctuates

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U.S. Federal Reserve Chair Janet Yellen, in Congessional testimony today, suggested that the U.S. economy and the general economic outlook is improving. An improving outlook will likely cause the Fed to continue its course of reducing monthly bond purchases. Any reduction in liquidity is typically viewed as bearish for gold. In world news, Russia indicated that it pullled some troops back from its border with Ukraine, potentially reducing tensions in the region. This good news which negativley impacts gold's safe haven status, exerted additional downside pressure on gold. The yellow metal moved sharply lower today, hitting $1286 before rebounding slightly to $1291. Gold continues to be range bound between $1280 and $1320.

Despite the lack of significant movement in the gold price, in the past 2 weeks demand has noticably increased for gold coins of all types. US and world gold coins, as well as many major bullion gold coins have seen increased activity, as world events and economic conditions continue to be unsettled. Gold buyers want to own gold coins, and may consider current price levels to be a buying opportunity.

Read 2631 times Last modified on Wednesday, 07 May 2014 21:28
Mitchell Battino

A professional numismatist with over thirty years of experience, Mitchell A. Battino is a certified appraiser and numismatic consultant who specializes in buying, selling, and appraising U.S. and world gold and silver coins. Mr. Battino is a regular contributor to numismatic publications, attends major coins shows, and travels extensivley to purchase deals and collections.

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