Purchase Gold Coins
May 16, 2009 - Some interesting news if you’re hoping to purchase gold coins this month: The American Eagles are actually being temporarily suspended.
You can take this as bad news if you like but you should look at the big picture before you start to worry. The reason these coins are being suspended? Unprecedented demand. This may come as a surprise to many but not to those who have been investing in gold for some time and who have been reading the headlines. During an economic crisis such as the one we're currently facing down, it can be expected that people will turn to gold coins as a solid investment option.
As you know, unprecedented demand for the metal is exactly what drove the gold coin prices up last year, meaning that the coins you do have in your savings should likely increase in value. Luckily you can buy gold coins not only from the US Mint, but from a gold coin dealer online, so in the end this is good news.
More good news; a press release from the US Mint has it that all 22 karat gold blanks will be administered directly to the American Eagle Coins and Uncirculated Coin programs, ensuring that this suspension will be temporary. Business as usual will resume as soon as the United States Mint has enough blanks to produce coins to meet investor demand, so if you're hoping to purchase gold coins from the 2009 minting for your savings and haven't yet had the opportunity there's still hope.
Overall this is very good news for anyone looking to purchase gold coins or already holding some. Gold prices are primarily influenced by a few key factors: Consumer and investor demand, supply of gold and the value of the dollar. Currently, consumer demand is high while the supply is running so short that demand can barely even be met. In essence this shortage of coins is directly linked to the recent ups we've seen in the spot price.
The truth is that it doesn't really matter what year your gold coins were minted. When you purchase gold coins like the American Eagle you're buying the coin's weight in 22 karat gold, which will protect you from economic strife and keep your finances healthy almost no matter what happens or what year is marked on the coins.
Of course, that said, we should certainly hope that this suspension of gold coin production won't have any effect on the coming ultra high relief American Eagles which will use new minting technology to create the most accurate, precise and beautiful American Eagles yet produced by the United States Mint. After all the entire reason the St. Gaudens American Eagle coins were selected for the program was because of their exquisite beauty and the fact that many coin collectors and dealers consider them to be "the most beautiful coins ever minted in the United States".
So again, even while you cannot at this moment in time purchase American Eagle gold coins directly from the US Mint, you can still obtain certified American Eagles through an online gold coin firm. Meanwhile, the high demand and low availability of the coins should be expected to make them all the more valuable for investors.
Joseph Morton
May 16, 2009
