As we begin a New Year that promises to be unlike any other year we have experienced, it is worth reflecting on how gold coins have made themselves integral parts of the market.

January 3, 2012 – As we begin a New Year that promises to be unlike any other year we have experienced, it is worth reflecting on how gold coins have made themselves integral parts of the market. Even as stocks languished, such as the particularly famous Bank of America Stock that went from $40 a share to just over $5 a share currently, gold experienced a 10.19 percent yield on the year. This number holds even considering the correction the precious metals that began in the month of December.

This was the second correction in gold for the year, the first occurring after an all-time high of $1,923 an ounce was reached in August and early September. We now know due to official reporting that following the September correction central banks around the world bought gold at record highs not seen since the end of Bretton Woods in 1971. Central banks haven’t bought this much gold in forty years.

The current correction, which already shows some signs of stabilization and possibly even reversal, offers a similar entry point opportunity. The market fundamentals are still intact and gold is a confident bull market for the foreseeable future, no matter what academics or television pundits say in the meantime. Just as they were wrong about gold in 2010, when the precious metal showed a 29.62 percent gain, they are wrong about gold being in a bubble or entering a bear market.

That will become incredibly clear over the coming days and months as investors, and central banks, take advantage of the relatively affordable prices by swooping in and buying as much gold as possible. The markets in 2011 were sluggish at best and there is not a single indicator or fiscal policy on the table to make one think otherwise for 2012. This makes gold coins the investment of the past year and the coming year.

Tangible commodities, gold, will be the star performer of 2012 as the system recognizes the constant injection of worthless paper debt instruments into the markets has a diminishing return, just like real estate. There are now over $707 trillion worth of Over the Counter derivatives in existence, with over $100 trillion having been created in the first half of 2011 alone. Markets will eventually recognize the difference and the unsustainability of the ratio. It would take the entire world’s GDP for 11.2 years to pay off the amount of derivatives currently loose upon the world. In this climate, and we may see a crossroads this year in 2012, gold coins are the best possible investment because they are real, tangible, and have an inherent value that has made it the historical store of wealth.

Kevin Johnson

Senior Staff Writer – GoldCoin.net