Friday, January 15, 2010

Size of federal deficit may be one reason to buy gold coins

One reason why this is widely seen as a good time to buy gold coins is lingering uncertainty about the economy, in part because of concern about the size of the federal deficit and long-term prospects for the dollar.

With that in mind, an article in Reuters cited financial experts who warn that efforts to lower the national debt are essential to avoiding what is described as a "crippling dollar crisis."

The wire service quoted former Congressional Budget Office head Rudolph Penner, who said federal debt reduction "will be done some day" and that it can be done either with "enormous pain" or "more rationally."

The issue is said to be getting more focus at this point, with the Obama administration preparing to release its fiscal 2011 budget in February.

Throughout the recession, the federal government has struggled with the competing tasks of managing its already large debt and trying to stimulate the economy. As the deficit and national debt have grown larger, more investors have been attracted to the security that gold offers.

News brought to you by Superior Gold Group – expert gold dealers offering precious metals products.