Gold Coin Value Forecast

November 02, 2010 – The much heralded elections are here and the question foremost on many investors’ minds is “What will happen to the value of my gold coins?” Other than a possible short term spike or dip, the answer is nothing new.

The truth is that even with a complete reversal of control in both Houses significant changes in fiscal policy will come very slowly, if at all. Gold prices are certain to continue opposing movement in the value of the dollar, and few expect the dollar to improve any time soon.

Since last summer the stock market has experienced a rare phenomenon – its movement has strongly correlated inversely with that of the dollar. That last happened in 1971 when we transitioned from the gold standard. Then and now the market was forced to adapt to a new economic reality and for a time stock values followed what one might assume is a natural close relationship with the underlying currency. With stocks teetering near peak values, however, that correlation will likely soon disappear or even reverse.

Meanwhile, the value of bullion, and consequently that of gold coins, is consistently moving to oppose the dollar. In the short term we can expect the dollar to show brief periods of resurgence, but most experts agree that asset buyouts by the Fed will fuel the dollar’s ongoing decline – which has been nearly 7% over the last two months alone.

The dollar’s decline and the very real threat of inflation create the ideal climate for sustaining a bull gold market. And recent predictions of rapidly escalating gold prices make the prospects for gold coin investments even more appealing.

The American Eagle gold coins’ combination of supreme liquidity, widespread availability, and patriotic connection present the perfect means for individual investors to profit from gold’s unprecedented growth.

Kevin Johnson

Senior Staff Writer – GoldCoin.net