Throughout history gold coins have been coveted by men to gain wealth. They soon learned that holding onto gold protected their riches when economic times became tough. The recent debt ceiling debacle in Washington, the credit rating reduction given the United States and the ongoing debt mess in Europe caused the stock market to plummet. Investors engaged in a massive selloff of risky stocks and headed to gold.
Gold responded to the very same economic news by soaring in price. The Federal Reserve recently stated they would keep interest rates at very low levels for the next two years. The stock market took this news as meaning the economy would be sluggish at best for a couple of more years. The stock market will likely continue to offer mixed results for some time, while the price of gold will rise even further.
One of the best gold coins to invest in is the American Gold Eagle. These coins are minted by the US government and offer a convenient way of investing in gold. They can be carried anywhere, bought and sold worldwide, and have the full backing of the United States government. While these coins are not currency they do have a face value. Naturally it is the spot price of gold that determines their true worth.
The Gold Eagle was first minted in 1986 and has been popular with investors ever since. In addition it is America’s only gold bullion investment grade coin. The stock market recently went down again on the fear that the United States and Europe may be headed back into recession. If this does occur gold coin investing is the place to find a hedge. One only needs to look at the anemic growth the major economies experienced last quarter to see this is a real possibility.
There are those who invest in Gold Eagles with survival in mind. In other words, these investors know the money supply can lose its value virtually overnight. Furthermore, they are armed with the knowledge that gold coins hold more value than paper money. If the currency should be rendered worthless their gold coins will allow them to buy the goods they need to survive. This may sound drastic. Yet, this is what many people did during the Great Depression to survive.
Finally, the continued debt crises in the United States and Europe have caused the stock market to become volatile. Gold on the other hand is not only stable, but is rising in price. Gold coins offer a convenient way to invest in gold, and if the world’s money supplies do crash, gold coins may be the best hedge yet.