American Bullion -- Make An Investment In Gold Coins

Monday, July 19, 2010 at 06:57am

July 19, 2010, Los Angeles – Gold bullion prices closed down for the week as did the dollar and the equity markets. Gold bullion is proving to be investors favored safe haven asset, physical Gold purchases continue to increase on dips.

The euro reached a two month high against the dollar and touched 1.3000 on Friday and investors believe it could climb to 1.3200 this week. Last week the Senate approved the most historic shakeup of the regulation of U.S. banks since the Great Depression.

European Central Bank President Jean-Claude Trichet was quoted on Tuesday as saying the world needs more than the three current major credit ratings agencies because their actions tend to exacerbate market swings.

This was evident in the most recent downgrades of euro zone government debt. "The ratings agencies in general tend to amplify rises and falls in financial markets. You can see it still today very visibly. That goes against financial stability," he said in an interview with French daily Liberation.

"It is probably appropriate not to continue to have a worldwide oligopoly of three agencies. But the underlying issue is to attenuate or cancel out this amplification to which the rating agencies contribute."

For the first time since the government began tracking the market, U.S. banks, central banks, and mutual funds have bought more government securities at Treasury auctions than Wall Street’s bond dealers.

Foreign and domestic investors combined to purchase 57 per cent of the $1.26 trillion in Treasuries sold by the government this year. That is an increase of 12 per cent over 2009, and a 25 per cent increase over 2008, according to government data compiled by Bloomberg.

In the week upcoming there are several reports that investors should be aware of, beginning with the July NAHB homebuilder survey on Monday. On Tuesday watch for Housing Starts for June followed by the June Regional and State Employment and Unemployment report.

Wednesday will bring the AIA's Architecture Billings Index for June, the leading indicator for commercial real estate, as well as Fed Chairman Ben Bernanke's report to the Senate Banking Committee: The Semiannual Monetary Policy Report to the Congress.

On Thursday, the initial weekly unemployment claims report will be released followed by the National Association for Realtors release of the June existing home sales report and Fed Chairman Ben Bernanke will give essentially the same report he gave to the Senate to the House Financial Services Committee.

On Friday, the Committee of European Banking Supervisors will release the results of the stress tests for 91 European Banks. Physical Gold's safe haven appeal increases in times of economic trouble. Purchasing physical Gold allows investors to prevent the erosion of their wealth through currency devaluations. Invest in Gold coins and bars today.