Though the Federal Reserve’s decision last week did not produce an instant and rocket- like explosion in the price of gold coins, certain world events are lending to the value of having gold coins in the future.

December 7, 2011 – Though the Federal Reserve’s decision last week did not produce an instant and rocket- like explosion in the price of gold coins, certain world events are lending to the value of having gold coins in the future. While the world waits for news out of Europe concerning the sovereign debt crisis, many other tactical moves are being made. These moves, in and of themselves, indicate a good long-term market for gold.

Standard & Poor’s is now effectively threatening to downgrade the credit rating of all seventeen nations of the European Union and, on November 29, downgraded the credit rating of thirty-seven global banks, including fourteen of the largest banks and brokerage firms in the US. Famously, the price of Bank of America’s stock is testing the $5 a share level, creating a financial crisis that may have prompted the Federal Reserve agreement with several central banks last week to lower the swap rate of the US dollar.

Everything is certainly far from business as usual in finance, and while one must hope that Forbes was inaccurate in reporting last week that we nearly saw the collapse of yet another large bank, it is important to recognize very clearly that your hard earned money and the wealth of your family is not safe in the American banking system. The customers of MF Global can attest to that. MF Global, whose boss, Jon Corzine, former Governor of the State of New Jersey, will be testifying before Congress tomorrow as to his role in the bankruptcy of that once-venerated American institution.

The best thing you can do in this market, given the problems confronting Europe and the effect it has and will be having on the American banking system is to put your money in gold. The store of wealth has served man for millennia and will continue to do so. Comparatively, the stock of Bank of America has been around for the blink of an eye. And from an all time high of almost $55 dollars a share in 2006, Bank of America stock has fallen to just over $5 a share.

In the same period of time, the price of an ounce of gold has risen from $720 in 2006 to today’s $1,730. That’s an increase of 240 percent. The price of gold has beaten every stock in its performance and, given the troubles in the markets and in Europe, gold is set to continue as the best investment available.

Kevin Johnson

Senior Staff Writer – GoldCoin.net