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Investing in gold coins became even more popular this week as the Federal Open Markets Committee released a statement on Wednesday promising to keep interest rates low through 2014.

January 31, 2012 – Investing in gold coins became even more popular this week as the Federal Open Markets Committee released a statement on Wednesday promising to keep interest rates low through 2014. The subsequent surge in gold prices was indicative of the effect this monetary policy will have on markets. The price of gold coins gained 4.4 percent in twenty-four hours following the announcement and continued gains through to the end of the week. At time of publication, after a December correction that saw the price of gold near $1,500 an ounce, the spot price is comfortably above the $1,700 an ounce level, ensuring that investing in gold coins is safe and effective in a long-term bull market.

In addition to the Federal Open Markets Committee, gold benefitted from other policy events out of Washington this week as Secretary of the Treasury Timothy Geithner went back to Congress for an additional $1.2 trillion raise in the debt ceiling. The debt ceiling, all will remember, was the issue that brought DC to a standstill this past summer as Republicans, Democrats, and Eric Cantor waited until the last minute possible to allow the debt ceiling raised. This did little else than cause serious shock in the markets, as the raise proposed was actually minimal, necessitated a raise at the current time, and any other fiscal policy out of Washington has been unheard of since the beginning of World War II.

The more debt the government keeps on its balance sheets, the more valuable gold will become as Americans continue investing in gold coins to “hedge the idiocy of the political cycle,” as legendary hedge fund manager Kyle Bass puts it. When you buy gold coins, you’re buying insurance against the failures of Washington, which have been considerable if not damnable these past years. In order to protect your worth, your labor, your family, and your future, you buy gold coins. “It’s that simple,” Bass says.

Under the current circumstances, everything the Federal Government is doing is benefitting those who own and buy gold. In the first month of 2012, the US Mint is breaking records for sales of gold and its been selling gold and silver on a dollar for dollar basis, ensuring January will be a month to remember for gold and silver sales. The gains in gold and silver will continue through 2014. The Federal Open Markets Committee made that clear this week. After a decade of a bull market, it’s interesting to think that investing in gold coins and silver coins can be so staggering in quantity and have so much more to gain in value.

Kevin Johnson

Senior Staff Writer – GoldCoin.net

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