Gold Coin Prices Outperforming Other Assets

January 25, 2012 - After dropping to $1,510 an ounce in late December during the correction, a move that caused some analysts to question if we had entered a bear market, gold coin prices have been propelled over 10 percent in 2012 so far. Seeing as we’re not yet through January and the price of gold has been weighed down in the past few days by the failure of bondholders in Greece to secure credit at a low rate, gold performing at 10 percent for the month is a very good sign of things to come in the New Year.

The main driver in the price of gold coins is, of course, the unraveling of the European problem, which promises to keep price levels intact and gives every indication of prices rising further than the all-time high reached in August-September of last year at $1,923 an ounce. The latest project by Goldman Sachs, one of the many banks who have put gold squarely on the front burner for 2012, is that gold could climb to $1,940 in the near term, as reported by Bloomberg. Actually, Goldman has released several reports citing high expectations for gold, with numbers as high as $2,500 an ounce for the precious metal in 2012.

And Goldman is one of the more conservative forecasters out there. Credit Suisse put the high end of the figure north of $2,750 and Societe Generale, under duress as it faced bankruptcy prior to a central bank intervention, released a report that essentially said gold is the only safe currency in this market. Paper burns; gold and silver are forever.

Gold coins are the premium method of owning and investing in gold. The American gold eagle is the most recognizable coin on the planet and the US Mint has been breaking sales records in January of 2012, with orders expected to continue at strength for the foreseeable future. The European problem is not going away and Greek bonds are maturing with a few key dates in the next couple months. While prices are slightly lower due to the weakness in the Euro, a lot of smart investors are buying the dip, a strategy that will pay off in the next two months. We are about to see gold coin prices go much higher.

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Kevin Johnson

Senior Staff Writer - GoldCoin.net