Daily Gold Update

Source: MarketWatch

New York— As the crisis on Wall Street deepens, retail investors, who can't afford the high cost of trading in the futures markets, have been increasing their holdings of gold coins as a safe haven. The U.S. Mint said last week it was temporarily suspending sales of American Buffalo gold 1-ounce bullion coins after soaring demand depleted inventories. The Mint had previously halted sales of American Eagle 1-ounce gold coin in August. "Tightness in the gold market is fairly normal in a time of financial stresses," said Dan Ferris, writer for DailyWealth, an investment newsletter. "We've seen high demand for gold coins because the news about banks is all bad."

Investors tend to snap up gold as the final tangible asset when the economy falls into turmoil. Some gold dealers said they have seen unprecedented demand for coins and bars as the financial crisis on Wall Street and Europe intensified worries about a global slowdown. "Because of what's happened in the past and what I believe is happening now [financial crisis], it is imperative you own some gold, some real gold, gold you can bite down on, gold that clanks," Ferris wrote in a September newsletter. See full story.