U.S. Mint Gold Bullion Coin Sales Down 25% in 2012

Although the ever popular American Eagles enjoyed the highest sales in 14 years a couple months ago, the mint’s total gold coin sales in 2012 dropped for the third year in a row.

What is causing such a prolonged lack of interest in the world famous mint’s exceptional products? Matt Day of the Wall Street Journal attributes the slump in U.S. gold coin sales to interest in other mints’ products, but largely puts the blame on gold exchange-traded funds. The total amount of gold held in ETFs clocked in at a record high of 85 million troy ounces in 2012.

So sales of Gold Eagles may be waning, but interest in the precious metal as investment option has not.

The Lure of Exchange-Traded Funds

Many investors are drawn to ETFs due to their familiarity with the stock market. Gold ETFs are traded in the same ways as stock in a company is traded, making the crossover into gold investment an easy option for those already knowledgeable of how the financial market works.

However, although it is theoretically possible to exchange one’s shares for the physical gold the investor owns, the process can be circuitous and restrictive, especially for small investors. Exorbitant fees and protracted processing times also limit an investor’s ability to exchange shares for gold.

Furthermore, exchange-traded funds require management and the gold must be stored, and these services, along with other fees, are taken out of the investor’s shares each year. Investors who are able to realize turning their stocks to physical gold will be disappointed to find out that their investments will be worth less than what they started with. Basically, buying into ETFs should be done without the expectation to ever see the physical gold itself.

“Here at Gold Coin, we recommend that investors be careful with how much faith they put into paper gold products, like exchange-traded funds,” said Arthur McGuire, Vice President of online coin superstore, Gold Coin. “ETFs are an ironic way to invest in gold, because they ultimately defeat the purpose of getting into the gold game in the first place, which is to have something physical to fall back on when fiat money lets you down.”

Those who desire to get maximize the security and benefits from their investments in physical gold must turn to the retail market. No other investment gives one the amount of control over one’s investments that physical gold does.

Take Advantage of the U.S. Mint’s Surplus

The best way to invest in physical gold—especially for small and first-time investors looking to hedge their household finances—is to purchase gold bullion coins. They offer security and liquidity that investments like paper gold simply cannot match.

And just because interest in classic products, like U.S. gold coins, is down, that doesn’t mean that purchasing them is a bad investment decision. American Gold Eagles are an exceptional gold coin product, world-renowned for their purity and beauty, and will retain their value for as long as we are all enthralled by the precious yellow metal.

If you are interested in buying gold bullion coins, Gold Coin, America’s Gold Superstore, can advise you on the most advantageous investments for your personal portfolio. Give us a call today at 1-800-425-5672 to speak with one of our market experts and get started making secure gold investments.

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