Gold Coin Prices Jump Despite Fed Speculation

Many gold coin market experts called for a dramatic fall of gold coin prices on Wednesday due to the Federal Reserve’s apparent plans to scale back taxpayer-based funding to purchase $85 billion in bonds and mortgage-backed securities each month, also known as quantitative easing, or for those who keep up with the Fed’s incessant spending sprees, QE3.

Gold coin values instead rose on Wednesday morning, an apparent signal that while investors may be skittish of bullion and paper-based gold at the moment, certain gold coins still provide value for individuals and institutions alike.

“Tomorrow’s [Federal Reserve meeting] minutes are very important as there is some concern that the Fed may want to cut back on the stimulus,” said Michael Smith, president of T&K Futures & Options in Florida.

The dollar has provided some resistance for gold prices, but the main reason gold coin prices have held back is due to the large-volume selling of derivatives investments by very large-scale investors. Still, gold coins such as Proof American Eagle gold coins, Saint Gaudens gold coins and Liberty Head Double Eagle gold coins have stood their ground because investors have augmented their holdings of these types of coins as a way to protect themselves from gold bullion confiscation by the government, as well as a way to earn extra long-term profits if the numismatic values of those coins rises, as has happened before in similar economic situations. Visit The Gold Coin Daily Market Update Friday afternoon to learn more about how the Fed’s policies could affect gold prices throughout the rest of May.

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