Senior Citizens Feel the Pain of Fed Rate Cuts
Investment income is in a state of serious free fall following the recent federal rate cut, and seniors are scrambling to rework their retirement funds and investment portfolios; dropping bonds and CD's and instead looking to strong foolproof leaders such as gold and other precious metals offered at Certified Gold Exchange.
New York, NY (PRWEB) February 20, 2008
Faced with an economy that is slowing and an equity market that is taking a clear beating, the recent unscheduled federal rate cut hurts America's aging population most of all. Following a global share slide on January 21 2008, the Federal Reserve cut the fed rate from 4.25% to 3.5%; a surprise move that has been labeled by many analysts as 'obvious panic' and bad news for senior citizens who depend on investments to earn and grow. Certified Gold Exchange, specialists in precious metal investments and trading, believe that gold is the only recession proof investment option.
The federal rate is the rate at which major banks charge one another for loans, and becomes a significant benchmark for the rest of the country, including senior citizens living off investment income. For the average senior citizen or baby boomer that is fast approaching retirement; the high percentage of Americans that makes up the savers and not the borrowers, the federal rate cut is bad news. In just one week, the average rate for a 1-year CD dropped.15% to 3.32% - a far cry from the 10% of the 1990's. With the cost of living on the rise including health care, prescription drugs and food, loss of earning on investments can mean financial disaster for seniors. Furthermore, analysts are predicting that money market mutual funds are also going to continue to fall over the next 30 to 60 days.
A recent statement issued by the U. S central bank, "while strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households", should be of concern to all Americans, but especially frightening to senior citizens who rely on interest earnings as income.
Following the fed rate cut, economies across the nation have taken some serious blows, and investors, especially baby boomers and retired seniors, are left wondering what to do in order to minimize risk and maximize investment income. The one commodity that continues to excel in the face of financial adversity is gold and Certified Gold Exchange educates all Americans about the importance of portfolio diversification through precious metals. Gold prices soared after the fed rate cut, with spot gold rising as high as $932 an ounce in January and many are predicting another year of double-digit growth in 2008.
To learn more about investing in precious metals and to receive the complementary CGE publication "2008 Gold Insiders Investors Guide", visit Certified Gold Exchange (CGE) online at http://www. certifiedgoldexchange. com (http://www. certifiedgoldexchange. com) to request a free copy.
About Certified Gold Exchange:
Certified Gold Exchange, Inc. (CGE) is North America's premier precious metals trading platform that is home to PriceMatchPlus® Guarantee and staffed with a highly qualified, industry leading research team which continually conducts extensive analysis on behalf of clients. Offering licensed dealers, institutional and household investors' real-time quotes when buying or selling gold, silver and platinum products. For more information, call CGE at 1-800-300-0715.
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