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Gold Off & Running Again This Morning
April 10, 2008

Gold Investors on the Move Again

Spot gold is again on the rise this morning, after a good day yesterday. At time of this posting, spot gold has been driven up to about $935 on an extremely weak dollar and rising crude oil.

The dollar is at a record low against the euro, while crude oil is at about $112 a barrel. A decline in U.S. crude oil stock piles has raised concerns over supply, resulting in a flurry of buying activity and higher prices. That see-saw I mentioned yesterday is definitely in favor of gold investment this morning!

Todays caviat however, is the pending announcement from the Bank of England and the European Central Bank on interest rates. These decisions will effect currency rates, which will in turn have an effect on precious metals investment. Watch for their announcements later today and observe their effects on overnite trading and into tomorrow morning.

Additionally I am starting to notice more little talk on the Internet about an overplaying of the commodities market by investors. There is reasonably based concern that speculation has pushed prices beyond the ability of an actual usage market to support, particularly in the case of precious metals. We have already observed some larger swings in gold bullion values over the past three months and this is the sign of an overplayed market. I don't mean to imply that there is a big crash coming for precious metals, not while the dollar continues to decline, just that you may see some frightening hills and valleys over the next six to eight months.
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About the Author
Tom Michael has been Krause Publications primary market analyst on more than 80 world and United States coin catalogs produced over the last 20 years. He came to KP in 1987 with a bachelor of arts degree in history, a master of arts degree in economics and a history of coin collecting stretching back to the 1960s. He began collecting world coins as a child by asking friends and relatives to bring coins back from overseas trips, visiting flea markets and having his mother watch for foreign coins in her register at the local grocery store. Today he works with a dedicated base of over 200 contributors to provide accurate market values for the five-volume Standard Catalog of World Coins series, as well as many specialty catalogs, including Coins & Currency of the Middle East and the fifth edition of Unusual World Coins.

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