Gold and gold eagle coins should be treated like similar investments. Why choose gold instead of investing in stocks, for instance, or in another type of investment that might yield the same return? This is a question that many gold traders asked before they got hooked on gold. This is a complex question because many factors affect this, such as economy and personal beliefs.
You are likely to be aware that the value of gold is one of the few rare items that has held its value and actually grown, even with the failing economy. With indications of recession striking the nation a year ago, the value dropped slightly, just to stabilize and increase once more, and now with the prospect of achieving new heights.
This doesn’t shock gold collectors and investors who are aware that gold has held its value for nearly two hundred years. In spite of financial hardships, the buying power of gold has been retained to a greater extent than any other form of currency worldwide. To illustrate, an ounce of pure gold 200 years ago still costs the same as it does today. Meanwhile, paper notes have seen fluctuations and price drops, due to manipulations and withdrawal of gold reserve which backed them.
Economy watchers predict that things will not get better in the years to come, considering many factors such as inflation, recession, and the overall decline of the world economy. However, despite this expected drop, the purchasing power of 100% gold is also expected to remain quite stable and even go up, as it’s insulated from economic movements and market forces.
Having established a potent reason why you should put your money in gold, it is also important to think about which form of gold to invest it. The four forms of gold are stocks, exchanged traded funds, bullion and futures. Of all these forms, however, most people with knowledge in the subject advise to invest in bullion because it is the most stable as far as value is concerned. The price of gold bullions such as gold coins does not crash or fluctuate, unlike gold stocks or futures. This stability has been proven throughout history.
gold coins have a lot of value for such a tiny package that can be conveniently bought, sold, traded, and easily protected. Aside from their actual value, gold coins are also nice to own and keep as collections because of their intrinsic aesthetic value. For example, most American Gold Eagle buyers, especially those that keep them as part of their collection, consider the design on the coin’s face in addition to the actual gold content when purchasing them. The above mentioned are all wonderful reasons for why you should think about purchasing gold eagle coins, whether as an investment, to collect them, or just as a hobby.
Bullion typically remains stable, no matter whether it is in the form of gold bars or the American Eagle Coin, and both forms are valued as actual gold, not its representations. Both have the assurance of retaining their value even when there is a stock market downturn or an economic recession and both have an instant salability at the value of gold at the time of the sale.
In addition, gold currency and bars are simple to transport and store, lending to their convenience and value as an investment form.
This then, for the collector as well as the invester or even just the hobbyist, is the answer to the question, why buy the American Gold Coin.
