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What the US Job Data will do to Gold Coin Investing

Anyone concerned with the recent jobs report, which has caused a great deal of negative sentiment about the overall US economy for the coming months, should be considering the value and effect of gold coins in both an investment portfolio and in wealth storage instruments. Most investors are doing just this, as we are again seeing a surge in the price of gold and other precious metals coincident with the concerns in other markets. The health of the US economy and the European Monetary Union are particularly of concern.

Most investors are very keenly aware the gold is the most time-honored method of wealth storage and wealth transference we have in our culture. Gold and gold coins have been passed down to us through the generations for many thousands of years. Even though investors and finance types must necessarily participate to an extent in the paper and digital markets in order to be competitive in the current field, the more exposed they are to the machinations of those markets the more they seem to prefer gold coins.

One of the particular reasons for this is a sense of inherent instability in the paper and digital markets. Every time an indication of this instability pops up, such as in the current jobs report which is considered dismal at best, there is a strong sentiment of fear that paper and digital instruments will very quickly lose value. This leads to demand for tangible assets that have inherent value.

Only 69,000 jobs were added to employer payrolls in the month of May, just three months after the February jobs report, which added 200,000 jobs to US payrolls, brought about all that optimism to the US market. The sharp turn has been strong. The surge in demand has pushed the price of gold again over the psychologically important $1600 per Troy ounce level.

Rightfully, the price of gold should not really be there, as we are in an overall correctional stage that should persist further. But the demand for tangible assets in risky markets will win out as a stronger driver in the gold market, particularly this gold market which shows the strength of investment instruments such as gold coins over more exposed instruments.

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