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While the stock market experienced the wildest gyrations in its history this week sales of gold coins has boomed at mints around the world.

August 12, 2011 – While the stock market experienced the wildest gyrations in its history this week sales of gold coins has boomed at mints around the world. Small wonder – investors are frantically scrambling looking for shelter from the storm, and they are coming to the realization that the old standbys are nothing but straw shacks.

It is almost comical that vast numbers of investors have found themselves huddled together under the tattered umbrella of Treasuries, the same downgraded instrument that started the panic in the first place. A great many others, still refusing to move beyond their unfounded prejudice against gold, took shelter in the Swiss franc only to discover that the Swiss are not at all happy to have so many uninvited guests and they are doing everything within their power to make them leave.

When all else fails, investors will simply have to let old paradigms die and accept the obvious: gold is back and it’s not going away. Analysts at J. P. Morgan have dramatically underscored that fact by adjusting their year-end gold price upward from $1800 to $2500! In that context, when it comes to buying gold coins a price movement of $100 or so is clearly irrelevant.

Earlier this week the CME group raised its margin requirements for gold by 22%, but failed to curb the stellar rise in prices. Today it seems like the opposition has joined forces to drag the price back below $1700, but by noon the resistance had been overcome once again, reversing well above that mark.

No matter what happens in the stock market over the coming weeks, and regardless of how long Treasuries remain in demand, there is unquestionably a sea change underway in investor sentiment – the realization that gold is taking over as the universally acknowledged safe harbor. It is up to individual investors to decide for themselves when it is prudent to head for that shelter.

Now looks to be a pretty good time to consider doing just that. The Reuters consumer sentiment index is at its lowest level in 31 years, plunging from 63.7 in July to 54.9 this month. The Fed has as much as conceded that they are out of bullets, so all they can do is inflate the stock market once again hoping to fool us into thinking things are better.

You don’t have to jump in over your head, but it you should at least test the waters. Buy a few gold coins today and see how it feels a little bit down the road – it could be the best investment decision you will ever make..

Kevin Johnson

Senior Staff Writer – GoldCoin.net

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