Monday, 5 September 2011

Investors Continue to Buy Gold Coins

There is one major reason why investors around the world are flocking to buy gold - security. At a time when financial markets around the world are shaky at best coupled with debt crises in America and abroad, investors are rightly seeking the safest haven for their investment. As you have seen over the past week or so, gold has been the hottest commodity around with skyrocketing prices. Market fears drove gold prices up to $1800 per ounce, even if only for a short time. It may be time to buy gold.
Let's revisit two Friday's past and consider how those market changes affected gold. The latest volatility started when S&P downgraded the US credit rating. While there was much speculation as to how the market would react on the following Monday regarding the downgrade, no one certainly imagined that the Dow Jones would drop 634 points. Within 72 hours, gold skyrocketed up to $1800. It was only as the market began to rebound that the price dropped slightly.
Surprisingly, even though the US credit rating was downgraded, investors still made heavy investment into US bonds. Which shows that even though there is a general lack of confidence in the markets as a whole, investors still know a smart bargain when they see one. But that hasn't affected how they see gold, which is still looked at as the premier safe haven for investment these days.
No matter when it takes place in history, market volatility will always cause gold prices to rise. When investors en masse lose faith in government and financial markets, that is a sure sign to invest in gold. Of course, many of you are certainly wishing you had invested some amount of money in gold when prices were in the $3-$400 range per ounce. It's pretty useless to beat yourself up about that as it does nothing to aid you in what needs to happen now. Do not let the current price of gold scare you away from making an investment. Now is the time to start preparing to buy gold.
It should be noted that if you're considering an opportunity to buy gold and silver, buy gold bullions, or buy gold coins, you should keep in mind that you shouldn't expect to see dividends or interest if the gold price is ever become stagnant. It's not exactly like putting your money in the bank. Your investment is directly tied to how much that gold is worth. On the other hand, gold is one of the few assets that you could actually hold in your hand and it will retain a fair amount of market value.
It should be noted that this market for gold has created a boon for gold sellers around the world. You need look no further than eBay for proof that gold markets can be extremely lucrative. Over the last two weeks, the market volatility along with debt problems in the US and abroad created a feeding frenzy on eBay. There's been so much growth in gold selling on eBay, that it actually had to create a special section just to accommodate the business. Everyday, the number of people who buy gold coins on eBay grows substantially.
Don't be surprised to hear some in the media sounding the horn for easing the heavy purchase of gold. There are some who are espousing the belief that the markets will turn around and gold prices will begin to drop. That seems highly unlikely given the US economic situation for which the reasons for are wide and complicated. One of the reasons why Standard & Poor's downgraded the US credit rating is because the US and its Congress showed a blindingly almost idiotic naïveté about how it's debt ceiling debate can affect markets not only in the US but around the world. The organization is seeking to teach a lesson hoping they learn not to play with markets based on politics.
Couple this situation with the fact that there is currently high employment throughout America and that unemployment among African-Americans is twice the national average; yet there is no jobs bill currently being pushed heavily in Congress and no indication that the Obama administration will alleviate this issue anytime in the near future. With that being the case, we would humbly suggest that you continue to find ways to buy gold while you can and while the price is still where it is today.
For more on how to buy gold coins and information on investment gold visit Gold Coin Buyer at
Ari B. Carlyle writes about financial markets and enjoys helping people find the best answers and solutions for safe and profitable investments.
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