Daily Gold Coin Update
May 13, 2009 – Gold bullion coins are a popular precious metal diversification because they allow investors to own a physical possessions safe haven asset in a beautiful, visually appealing package. Investing in gold bullion coins has been increasing in popularity since the late 1970’s, when the United States Government lifted the gold standard, which basically allowed American citizens to hold the metal once again. The first bullion coin that was available for investors was the South African Krugerrand, followed by the Canadian Maple Leaf and the American Eagles. It is important that investors understand that bullion products have a small premium above the daily market spot price, usually no more than 5%. It’s also important that investors understand that the United States government can confiscate gold bullion coins as they did in 1933 in order to prevent an economic collapse. Investors who seek similar coins that cannot be confiscated may be better off diversifying into the certified rare coins such as the fully private $20 Saint-Gaudens and $10 Indian Heads.
By around 12:30 PM Eastern Standard Time, the bullion spot price has officially risen to its six-week high, currently trading at around $926.20 per ounce, jumping up $3.30 for the day and also jumping up $33.60 in the last month. Several market analysts, including those from Bloomberg.com are saying that the inverse relationship between gold and the United States Dollar will continue in the short-term, and that inflationary pressures may be a positive catalyst for spot prices down the road.
Arthur McGuire
Senior Staff Writer – Gold-Coin.com
