Gold Coin Prices

February 11, 2010 – The risk of currency devaluation continues to have a positive effect on gold coin prices as people look to gold as a viable alternative asset of value. “Every currency in the western world is being devalued,” said Eddington Asset Management’s chief investment officer Alex Allen. “Therefore gold has some kind of value to investors.”

Much of the investment strategy employed today is geared towards risk management. While gold was viewed as a low-risk investment during the recent recession, the continued economic uncertainty is still a factor. "Most of the trade right now is a confidence play," said Daniel Pavilonis, a senior market strategist with Lind-Waldock.

The sovereign debt crisis in European countries such as Portugal, Italy, Greece and Spain are perfect examples of the preoccupation with risk, with US dollar values rising on little more than the concern of monetary problems abroad. Gold coin prices turned higher as today, going over $1,080 for the second time this week on news that a resolution for the Greek crisis may be close.

Gold investment is typically a very strong move when currency values fall. Since the buying power of a currency drops with its value, gold becomes more valuable as investors see inflation and other devaluating factors affecting the US and other countries.

Capitalizing on its reputation as an alternative currency, gold demand continues to be strong worldwide, for jewelry, consumer products and investment. Gold coins, bars and other forms of gold investment could continue to rise as shaky economies and lower currency values lead to price increases in the precious metal. 

Kevin Johnson

Senior Staff Writer –

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