Investors who buy gold do so for a number of reasons, and this writer has heard most of them. After being involved with the industry for so long, it is safe to say that there are two main motivators for investors who buy gold, and these same factors have caused the gold spot price to rise to new heights during the last two weeks. Some investors buy to make a quick profit, because they believe that the gold spot price will spike. We see many of these investors pop up around the holiday season, and economists expect that this year will be no different. Investors who want to take a short-term position in the gold market tend to purchase gold bullion. Bullion bars and coins trade alongside the active spot price listed on the Commodities Exchange(COMEX) division of the New York Mercantile Exchange(NYMEX). American investors have been partial to the Gold Eagle bullion coin, which only uses gold mined from the United States. Other US investors prefer to purchase and sell gold bullion bars because they are slightly less expensive than bullion coins. Gold bullion investors realize that spot prices fluctuate frequently, so these investors require stealthy timing to profit with these investments. If day-trading is not the investment strategy that investors wish to utilize in the gold market, then certified gold coins may be a better option.
Investors who buy gold coins that have been certified by either the Professional Coin Grading Service (PCGS) or the Numismatic Guaranty Corporation (NGC) appreciate these coins' status as a battle-tested long-term investment. This type of gold investment can also provide an added element of serenity, since these times of political, international, and financial friction generates so much stress already. Investment-grade gold coins move in the same direction as the gold bullion spot price, and they also carry an extra premium for their rarity that exempts them from a second possible confiscation of bullion by our government. Gold spot prices and projections are available around the clock at www.GoldPrice.net, where investors who buy gold can take advantage of the free information provided by the Certified Gold Exchange.
Steven Martin
Senior Gold Specialist - Buy-Gold.org
