Gold coins: calm amidst the chaos.

December 02, 2010 – It seems that Wall Street gets more confused every day, so it is hard not to be grateful for the consistency of gold coin investments.

Wednesday’s stock market rally – a most impressive one that went hand in hand with strong indications of investor expectations of sharply reduced market volatility – may already be putting on the brakes. Futures are moderating in response to news of much higher than expected new claims for unemployment. The Wall Street’s mood swings of late make the market look as though it is driven more by emotion than by common sense.

However, there is some logic behind the rally – stocks are simply the best of the traditional evils. Bond yields, as compared to those of equity investments, are far worse than the 90 year average. And the prospects for the currency market are at an all time low. So that leaves stocks. But stocks are trading at a very precarious 12 times projected earnings, leaving investors out on a limb. In need of a safety net, they are turning to gold.

Growing hedge investments can only improve the outlook for gold coins, which already are performing strongly due to overwhelming demand as a safe haven. Fear of global inflation fueled by strong performance of emerging economies, further weakening of the dollar, and the euro’s troubles are expected to continue doing their part in driving the price of gold steadily upward.

A Goldman Sachs note cited in the Wall Street Journal states that investors will continue buying gold at least through 2012. Although the firm has ultra conservative forecasts for the price of gold, other reliable sources predict the price will rise anywhere from 40% to 80% in 2011.

However you look at it, today there are more good reasons than ever to buy gold coins.

Kevin Johnson

Senior Staff Writer –

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