July 1, 2009 – $20 Saint Gaudens

Plenty of good news this month for those currently holding some $20 Saint Gaudens coins. Safe-haven precious metals have generally seen a strong year throughout 2009, but when it comes to coin investing, we’ve seen a period of consecutive increases in the spot price, keeping the metal sitting comfortably over nine hundred dollars an ounce.

So if you’re thinking of picking up a few more $20 Saint Gaudens or Canadian Maple Leaf coins, it may be wise to do so now so that you can capitalize on these gains before the price starts to level off, as it most likely hasn’t quite peaked just yet.

While you don’t need to be obsessive about monitoring the spot price when you purchase the $20 Saint Gaudens, it’s still a good idea to keep an eye on them, nonetheless. Whether you’re buying a $20 Saint Gaudens or looking into the South African Krugerrand, their value is based on their metallic content (plus rarity and condition for certified rare coins). You can easily pick up as many coins as you need for investment purposes and leave it at that, but by watching out for the peaks and valleys in the spot price, you can maximize your potential based entirely on when you choose to buy. Of course, the spot price is rarely the exact same value as the coins themselves, as the Mint doesn’t adjust the price on an hourly basis or anything, but rather, at certain intervals.

When you buy the $20 Saint Gaudens during a period where the price seems to have levelled off, you may be able to get in early before the next big climb in spot prices occurs. By starting at the beginning of a climb, you can fully enjoy the profits made over time as it grows and later levels off.

Of course, even if you choose to buy at the very tip of a peak, you can still rest easy knowing that gold is a long term investment rather than an overnight rise-and-crash market. Last year, gold broke the thousand dollar mark per ounce for a very brief moment before settling back down into the nine hundred dollar range. Now, if you had bought gold at that exact moment, then it would be a tad less today than it was then. However, many analysts are expecting the current rises to actually level off at over one thousand dollars per ounce, so in the long run, should that happen, you would still be seeing positive growth on your investment even though you bought the metal just as the climbs peaked.

This is why many consider these coins to be a "worry-free" investment. You’re not likely to double your investment in one week or anything like that, but you won’t see your investment cut to half your initial holdings in one week, either. Simply put, it is investing with very little in the way of serious risk involved. As long as you buy only from certified dealers, it’s very hard to lose serious money in the metal.

Linda Hess

July 1, 2009

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