United States Gold Coins: The Investor’s Choice

 

Over the past 35 years, United States coins have emerged as the chosen favorite around the globe for investors seeking collectible coins. There are many reasons for their popularity: their large size (almost a full ounce of gold), their stunning artistic beauty, their affordability, and their great liquidity. In investment terms, that translates to greater privacy, protection, and profit potential – key benefits for any investor.

 

Why US Gold Coins

Since 2001, gold has increased in value over 500%, far surpassing the growth of the U.S. stock market, mutual funds, real estate, CDs and treasuries.  What is the driving factor in this burgeoning market for the yellow metal?

 

The greatest commodity bull market of our generation is unfolding around the globe, driven by emerging markets in China and India, the two most populous nations in the world. The financial emancipation for over 40% of the earth’s population will continue to propel the precious metals market. The investment world is in the process of a major paradigm shift away from paper financial assets into tangibles. For astute investors and savers who position themselves properly in the precious metals market, the next 5-10 years could prove to the investment “opportunity of a lifetime”.

 

1970’s and Now

The 1970s were a time of unprecedented upheaval in the United States: cultural, economic, and certainly political.  This chaotic decade helped set up one of the biggest bull markets in history for gold, silver and other precious metals.  When times get tough, investors turn to gold as a safe haven to ride out the storm.

 

Today, many of the same types of economic and geo-political external forces of the 1970’s exist today, however, the overall scope and proportions of the problems are actually much greater. Similarities exist such as enormous war expenditures, rising oil prices, rising inflation, climbing government spending programs, and a shift in Washington political power from a conservative to a liberal bias. However, we now face many new and even more extreme circumstances.  Beginning in 2008, the first wave of baby boomers began receiving government entitlements, putting a huge new strain on our giant budget deficit. This generation could very well witness the death of the dollar in terms of its international status as the world’s reserve currency. In a world literally drowning in a sea of fiat paper currency created by the world’s central banks, it is little wonder that investors and saver are turning to the only “real money” – Gold.

 

Who are the Big Buyers of Gold?

The current bull market in gold and other commodities are NOT being fueled by Americans. In fact, the average American investor doesn’t seem to be aware of the scope and magnitude of this market.

 

Most of the gold buying is coming from India, China, Russia, and the oil rich Middle Eastern nations. Each of these nations has long had a keen interest in, and love affair with gold.  Because American investors have recently suffered two excruciating losses, both in the internet stock bubble as well as the recent implosion of the real estate bubble, I believe perceptive American investors will soon enter the precious metals market. As economic uncertainty increases, American investors – as well as foreign – will surge into the gold market.

 

How Long Will Gold Rise?

The average primary bull market in commodities has lasted roughly 18-20 years over the past two centuries. The current bull market began in 2000, and we are only now in the second phase of this market. The second phase is always the longest and broadest cycle. When adjusted for inflation, the price of gold would actually have to top $2,170/ounce to better its 1980 high.

 

Several of the top commodity experts in the world have predicted gold to eventually reach the $3,000 to $5,000 level before the current bull market climaxes.

 

If you have not already positioned yourself in the gold market, recent price pull backs offer an excellent time to move aggressively into physical gold. Gold coins offer an ideal vehicle to maximize your potential in this expanding market.  The experts at ICA stand ready to help position your portfolio for maximum advantage in this burgeoning market.

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