There are many reasons why wise American investors would want to buy gold coins during the current financial crisis, and here at the Certified Gold Exchange we have noticed that investors diversify into these coins for two primary reasons; short-term profit-taking or long-term wealth preservation. Investors who want the short-term profit-taking usually enter the market when spot prices are low and exit when they feel that they have made sufficient profit, while the investors who want long-term wealth preservation usually enter any time because they mostly feel that spot prices will appreciate significantly over time, acting as both a hedge against inflation or deflation as well as a profit tool. I have always recommended that before an investor enters the market, that they have a basic understanding of how supply and demand works along with their investment goals and needs.
The reason I say this is because there are two major categories that an investor can diversify into when deciding to buy gold coins, the bullion products and the certified investment grade rare products. Bullion products are simply any of the modern day coins you have probably heard of, such as the American Eagles, Canadian Maple Leafs or South African Krugerrands. On the other hand, the certified investment grade rare products are pre-1933 coins that cannot be confiscated by the United States Government, such as the $20 Saint Gaudens, $20 Lady Liberties and $10 Indian Heads. I have noticed that short-term profit-taking clients usually benefit by owning bullion while the longer-term wealth preservation clients usually benefit by owning the certified rare coins.
John Halloran
Senior Gold Specialist – Buy-Gold.org
