Are gold coins a good investment?

Answer 1

The current run-up in gold prices means a lot of coins are worth more for their metal content than for their value to collectors. You have to do a lot of homework and never overextend yourself. Numismatic coins offer the potential of a higher return than bullion gold, but the risks that the coins will give you that higher return are very high. Only in 1986 did the coins offer a good return and that was short lived. Those who got stuck holding the coins never recovered their investment. Bullion coins, like the American Eagle, are good investments as an investment in them have provided a positive return each year since 2000. How many other investments have one that? But more importantly, is the fact that gold bullion coins offer a good hedge against a falling dollar.As the U.S. government via the Federal Reserve and Treasury continue to add more debt on top of debt, the dollar will continue to slide. Gold coins are a good place to counteract their economic ignorance.

Answer 2

Gold has been in an uptrend year over year since 2000 yet it gets no attention from the media. CNBC tries to bad mouth it all the time.

The real risk right now is in the dollar with all of the spending and bailouts that our government is doing. The dollar has fallen the last few weeks and gold has had a nice run and is about $100 from its all-time high. (5/21/09)

Adding more debt to debt isn't the solution to resolving what's wrong with the economy. 28 years ago the price of gold was $850. Today it is around $930, yet the amount of debt is over 10 times that of 1980.

Keep a close eye on the dollar index and as it falls, gold will move higher.

Gold is also a good hedge for one's portfolio as there is nothing that financial advisers recommend that counteracts the fall of the dollar. Gold and silver are the only assets that do this. I wrote a White Paper "How Gold Can Secure Your Retirement" that you can download for free at www.fedupbook.com/whitepaper

Answer 3

The concept of buying/holding Gold has been followed for ages. Gold has been one of the most sought after precious metals for generations and people have been crazy about owning gold always. In olden days the amount of gold possessed by a king signified his power. In the modern times the amount of gold in the reserves signifies the strength of a country's economy. It is an unsaid truth that Gold symbolizes wealth.

Gold as an Investment option is very attractive. When I was in my school my mom used to buy 10 grams of gold at the price I get her 1 gram now. That is how much the price of gold has gone up in the past 10 years. Also, gold is a limited resource. In India especially we do not have many gold mines that have been able to consistently produce as much gold as some nations around the world are producing. So considering these 2 factors Gold is a very attractive and a comparatively safe investment option.

Answer 4

From the earliest days of civilization, gold was attractive for its combination of rarity and value, its beauty and relative ease of use in fabrication of ornaments, and the fact that in case of emergency it was easy to carry. Moreover, a great number of early civilizations accepted the value of gold so that it early on became an important feature in international trade and diplomatic relations.

Gold therefore has a very long tradition of being used in coins of high value and from there on, it became in the late 19th and 20th century the standard in determining the value of any country's money by measuring the amount of gold bullion in its Central Bank against the amount of money it had in circulation.

Today the Gold Standard no longer exists, but gold still has a great emotional (rather than a rational) value, certainly when times become uncertain. Then, people often start selling stocks and bonds and start buying gold. Why? Mostly because after 6,000 years of civilization, gold as a last resort-safe haven has become embedded in our genes. As a sound investment choice it does not rank very high, however: exactly because of its largely 'emotional' value the price of gold can fluctuate wildly and gold in the meantime doesn't generate any interest income.