How Do Gold Coin Buyers Affect The Gold Coin Market?
November 19, 2009 – Gold coin buyers helped elevate the gold spot price to $1153 earlier today, but the weakening US dollar was just as instrumental in causing Commodities Exchange (COMEX) gold values to rise. Many investors have decided to purchase gold coins in recent years, because our government’s disturbing lack of financial responsibility has put our country in a deep, muddy hole with no apparent way to escape.
Our government has tried to quiet the clamor by infusing our financial markets with trillions of devalued dollar bills, but this strategy has only served to make matters worse. Our government cannot avoid the inevitable demise of the dollar without some sort of radical change in monetary policy, so US investors have fled dollar-backed assets in favor of gold bars and coins. Gold coin buyers can be split into three basic categories:
• Collectors
• Short-Term (1-14 month) Investors
• Long-Term (14 months or more) Investors
Collectors buy a wide range of coins, but the majority of coins that collectors purchase are extremely obscure and hard to find. Gold coins that collectors seek may not track the spot price of gold, so investors shy away from these types of pieces. To learn more about the rarest of rare coins, visit www.Rare-Coin.org.
Short-term gold investors buy gold bullion coins like the American Eagle and the South African Krugerrand. Gold bullion coins track the gold spot price and trade at minimal (4-8%) premiums over the gold spot price’s current level. Gold bullion spot prices can be tracked at www.GoldPrice.net, or you can register for obligation-free, live quotes here.
Long-term gold investors may not want to shift funds into gold bullion coins, because commonly traded rare coins may do better financially in the long run. Gold coins like the $20 Saint Gaudens and the $20 Lady Liberty that were minted within the United States prior to 1933 have tracked and outpaced the growth of gold bullion coins for six consecutive quarters, and many rare coins are still 200-400% below their historic highs. Gold coin buyers can find more information on investment-grade coins in our award-winning gold investment tutorial, and you can get your free copy here or by calling our toll-free number.
Stewart Lawson
Senior Staff Writer - Gold-Coin.com
