Gold coins such as government-issued bullion coins should be found in any investor’s gold collection that is truly serious about his financial future. Gold coins are an essential additive to any collection that consists of jewelry, gold mutual funds and gold stocks. Experts agree that gold coins are currently a sound economic investment because of record high gold prices and current political and economic uncertainty among other things.
Gold Prices Are Going Up
According to the NYMEX, the price of gold has been steadily increasing for the past couple of years. The average price of gold in October 2008 was $1,033.90. The price of gold officially passed the $1,300 per ounce barrier in September 2010, which marks the first time that gold has reached a price that high.
Donald Luskin, chief investment officer of Trend Macrolytic, said that “there’s no way out but up for gold now. Either the global boom continues and rising demand carries gold higher, or the boom goes bust and the consequent inflation does the job for gold.”
Coins are Safer than Stocks and Mutual Funds
There are risks when you purchase a gold stock or mutual fund. First of all, there is company risk with gold stocks. You have no control over situations that could hurt a company’s stock such as a change in management, poor decisions or a lawsuit.
Gold stocks and mutual funds are also susceptible to being hurt by general market forces. Things including the value of currency, political activity and the bull and bear cycles can all have significant affect on stocks and mutual funds. Gold coins are not as affected by these situations and will therefore hold their prices better than stocks or mutual funds.