Daily Gold Coin Market News
3 February 2010 - In an effort to help meet strong demand for gold coins, the United Kingdom’s Royal Mint has more than doubled its bullion production. This demand, driven by central banks, EFTs and private investors alike, led the Royal Mint to raise it production from 46,000 ounces in 2008 to 125,500 ounces in 2009 as focus turns away from currency-based investments to asset-based commodities.
Britain was not the only country to increase its bullion output. The United States also increased its production, with a 66% jump in the number of American Eagle gold coins minted. With bullion prices increasing nearly 25% while the dollar fell over 4% for the year, a move to gold investment was not unexpected.
The big motivation for many people is fear. The concern surrounds falling currency values and the introduction of excessive currency to the economy. These factors can severely weaken the monetary system and force people to look for investments like rare gold coins and bullion, commodities that have been traditionally used as a hedge against economic hardship. This reputation is built on forty years of history, during which the price of gold has increased more than 1,600%, making it one of the best investments over the past generation.
Gold investors can look at increased production by the mints in the UK and the US as signs that gold is still in high demand. This demand will almost assuredly continue to drive prices upward, making investment in gold coins a good move for the foreseeable future.
Michael Williams
Senior Staff Writer - Gold-Coin.com
