American Eagle Coins
As of the time of this writing, we have only about one more month left before the ultra high relief American Eagle Coins are made available once more through the US Mint (so depending on when you read this, the suspension may well be over by now, in which case, why are you reading this? Go grab a few before they sell out!).
You can buy certified American Eagle Coins from a reliable dealer either online or in person, but even if you choose to invest in coins through such channels, this is still good news, as the ultra high reliefs are only planned for a one year mint as of now, so the more coins they wind up minting the better. Hopefully, the US Mint will renew the program, but we’ll have to wait and see on that front.
As you most likely know already, the American Eagle Coins were suspended due to unprecedented demand, which should just go to show how serious investor demand has been for the metal this year. The basic truth of supply and demand is that, when supply is low while demand is high, the value of a commodity almost always tends to go up. Obviously, gold is no exception to the basic rule of economics because... gold is where we got the basic rule of economics in the first place, and the value of an ounce seems to hold true even five decades after the end of the gold standard’s use in the United States.
If you have yet to get your hands on one of the beautiful ultra high relief pieces, make sure to grab one once the American Eagle Coins start going on sale again, because, at this rate, there’s no telling how long this run will last, either.
Actually, another shortage is almost a certainty, as, in light of the current recession, the demand for these coins isn’t likely to start going down any time soon. So make certain you snag some right away.
The upside to these shortages is, of course, that the best time to own a rare commodity is when everybody wants it and there’s not enough of it to go around. With the price of gold still climbing, it doesn’t look like the American Eagle Coins will be peaking in value or demand any time soon, either.
We’ve said it before and we’ll say it again, but this recession is neither the first we’ve ever experienced, nor the last we ever will experience, and it won’t be over within the next week, the next month, or perhaps even within a few years, and the record demand for gold will remain high for as long as the recession continues.
Of course, gold has proven, time and again, to be the most effective and reliable way of protecting oneself during times like these. What we can hope is that today’s new gold investors will have learned something from this recession, and that they will continue to invest in gold in the future, and not merely as an emergency “plan B” as it were.
Joseph Morton
Aug 24, 2009
