Gold Coin Investments
If you've been needing a few thousand dollars to do some remodelling, you may want to consider only selling a few pieces from your gold coin investments. 2009 has been kind to gold prices, with the current average, as of the time of this writing, sitting comfortably over nine hundred dollars an ounce.
What this means is that, if you chose to buy some coins for your gold coin investments at any point in the last few years, you've likely made a significant profit at this point.
No matter where you look, there's a lot of good news in gold coin investments recently. Along with the other precious metals, the spot price is steadily climbing and it most likely has yet to peak.
Many may be tempted to simply cash out with American Eagle coins being as valuable as they currently are. Now, if you're holding onto coins you've had since the early nineties, you've likely made anywhere from a 200% to a 400% growth on your gold coin investments at this point (not accounting for inflation, that is), and you may well be wise to take some of that money out and put it into other ventures. Of course, if you are one of the many who purchase gold coins for your retirement account, the good news is that gold is very likely to continue rising into the coming months.
It hinges upon the economy and the value of the dollar, as well as investor demand for the metal, of course. To look at the price of the metal during the 1970’s recession, we saw an incredible rise between 1971 and 1980. However, the 1980’s brought an end to the recession, and the metal saw a short lived crash in the beginning of the decade, before going back up and then continuing to decline between 1981 and 1990. The decline immediately started climbing again by the beginning of the new millennium, though. With an average price in the mid two hundreds in 2001, the price now sits at close to a thousand dollars an ounce, having even broken that mark at one point in 2008, reaching $1033 per ounce.
When you buy gold coin investments, the investment is something of an insurance policy against recession. The metal's value tends to decline when you don't need it, and it tends to skyrocket when you do need it. This is exactly why it has remained so popular over the years, even during its declines, as a way for investors to give themselves a solid foundation to stand on.
While you may suspect that we're about to peak, the fact remains that the economy is not standing on solid ground just yet. The recession won't be over by the end of the year. It may not even be over by the end of 2010 or 2011. While many have put faith in President Barack Obama to correct the problem, even the Commander in Chief himself has said that these are problems which cannot be solved in one year or even one full term. Hold onto your gold, because there's no telling what the next few years have in store.
Joseph Morton
July 1, 2009
