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Demand For Certified Gold Coins, Gold Bullion Coins Up After Sell-Off

Tuesday’s gold spot price of $1312 represents a number 25 percent less than the gold spot price from one year ago, yet refineries, mints and dealers around the world have consistently been reporting increased demand for gold coins. Normally one could conclude that rare coin dealers conspired to give the impression that certified gold coins are the “in” investment, or maybe it was the bullion coin minters who are pushing propaganda in order to move their wares.

These conspiracy theories fail to hold water, however, as both the certified gold coin market and the gold bullion coin market have impressively dealt with the recent blows to the gold spot price. Could it be that consumers are starting to realize that the dollar could crash at any moment? Perhaps. Is the gold spot price so low that investors see no choice but to take advantage of the bargain-hunting opportunities? Maybe.

The likely answer is that a combination of fear, greed and a portfolio packed with stagnant investments has motivated household investors to look beyond the mainstream to gold coins. Many gold bullion coins cost just a few dollars over the gold spot price, allowing investors the opportunity to realize profits quickly should gold jump by just a few percentage points. Other investors place their trust in certified gold coins for their classification as profitable, private collectibles that the government would most likely exempt from a future gold bullion confiscation similar to the one that took place in 1933 and the effects of which were felt until 1974.

Gold bullion coins and certified rare gold coins serve two very different purposes, and sadly some investors are buying the wrong type of gold coins right this moment. Just as a homeowner in North Dakota would not buy hurricane insurance, a safety-minded investor with long-term holding plans would not reasonably buy gold bullion coins. On the other hand, a homeowner in Kansas would most definitely want tornado insurance, just as a short-term profit seeker would serve themselves by purchasing gold bullion instead of rarities.

After the heavy selling that took place last week the gold price is now hovering above the $1300 per ounce mark. It could fall or it may rise suddenly, but either way demand for gold coins does not appear to be waning anytime soon. To stay up-to-date with gold and silver prices follow us @GoldCoinNet or Like our Facebook page at facebook.com/goldcoinprices for discounts and special offers.

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