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Gold Spot Price


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Gold prices are falling for seven straight days now. The gold spot price is currently down almost 9% from the jump in January to just over $1000 an ounce. This may seem alarming, but it really is no reason to panic. These corrections are natural and even healthy as many experts have claimed.

Gold bullion was growing in popularity and as a result the prices became inflated in just over a month, jumping almost 24% by Feb. 20th. These prices could not be maintained, and a correction was bound to happen. Investing in gold is not a short term investment, and these sort of fluctuations in the gold spot price should not overly disturb any who are buying up physical gold. Short term changes have very little effect over the long term growth, and the reason you should be investing in gold in the first place is for a long term asset protection strategy. As was stated on a recent article on seekingalpha:

The gold bears are calling for lower prices due to a decline in demand from India and an increase in gold scrap (consumers selling jewellery). They also believe that there may be an easing of investment demand for bullion and ETFs. ETF demand has certainly subsided from the exponential growth seen in recent weeks. However, given the global financial and economic system is effectively ruptured, wealth preservation and risk aversion is likely to remain evident in the coming months and indeed years.

This may lead to a change in investor behaviour whereby gold again becomes an integral core holding in most investment portfolios and in pensions. This would see investment demand remain robust and remain at higher levels for the foreseeable future. Even if investment demand does fall from record levels seen in recent weeks, this is likely to be compensated for by increasing demand from central banks particularly China and OPEC nations.

Current Gold Spot Price from Kitco

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