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Gold Bullion Coins

September 16, 2010 – Gold bullion coins took major price hits over the last month or so but rebounded in fine fashion today with the new record-high gold spot price of $12.78. After eclipsing the early morning high of $1275 by $3 per ounce, profit-taking kicked in among a large percentage of gold stock traders and gold is sitting at $1768 at 3pm EST.

Gold bullion coins, the most common of which are the American Eagles, the Canadian Maple Leafs, the South African Krugerrands, the Austrian Philharmonics, and the Chinese Pandas, gain or lose value based solely upon the fixed spot prices in New York, London, and Hong Kong. These types of coins usually carry a 3-8% buy-and-sell spread, which is the difference between the dealer’s buying price and asking price. Savvy investors can quickly overcome these premiums in a roller-coaster-like bull OR bear market, so short-term traders who prefer coinage to pure god bullion bars (which are just as liquid and often less expensive) use gold bullion coins to attempt short-term asset growth.

Other investors prefer gold bullion coins because of their conceived “non-confiscatability” by the US government. This is a common misconception, because certifying a post-1986 gold coin as MS69 or MS70 does not increase the coin’s rarity. Many of the US Mint’s modern-day coins would qualify as Mint State quality, so investors looking for increased profit potential and leverage against gold confiscation usually seek out MS62-MS65 Double Eagle gold coins. You can learn more about all the types of investment grade gold by registering below or by calling one of our experienced advisers today.

Kevin Johnson

Senior Staff Writer – GoldCoin.net

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