American Bullion -- Buy Gold Bullion In Coins And Bars

Thursday, June 17, 2010 at 06:53am

June 17, 2010, Los Angeles – The price of Gold closed slightly lower after reaching an early one week high on Wednesday. Bullish factors underpin the price of Gold as investors continue buying Gold coins and Gold bars as a hedge against financial and geopolitical uncertainties.

Bill O'Neill, managing partner at LOGIC Advisors in New Jersey said, when Russia's central bank announced that it was looking to diversify its currency holdings, it gave gold a lift.

"When I saw that, it brought to mind that they're probably also looking to add some gold, which they have already done. I think those types of things indicate the alternative asset demand for gold is still there," said O'Neill.

"I think the upside for gold is still very strong in terms of safe-haven flows," says one Singapore analyst, Wong Eng Soon at Phillip Futures, speaking to Reuters. "There seems to be a preference for large funds to be long on volatility, take on more downside protection, and be less correlated with wider markets. This suggests risk aversion is still prevalent."

The Bank of Spain’s recent decision to publish the results of stress tests on Spain’s lenders may force its European neighbors to follow suit. Miguel Angel Fernandez Ordonez, the central bank governor, in a speech on Wednesday said they want to release more information on the state of the banks as investors demand more disclosure of risks on the bank's books.

He didn't make it clear whether he would release individual lenders results, but many such as the banking groups in Germany and the U.K. see risks in disclosing details on specific institutions. When faced with geopolitical and economic turmoil, your wisest choice is the safe haven of physical Gold. Buy Gold bullion in coins and bars today.