September 14, 2009 Posted by James Randolph on September 14, 2009
September 14, 2009 – Economists say the certified gold industry should be prepared for an unprecedented rise in demand for numismatic coins, as the fast-approaching G20 summit could include sessions on gold confiscation and the collapse of US currency that is not currently back by gold. Certified gold is valued as a non-confiscatible private asset that the government did not historically recall.
Many investors decide to buy gold when inflation infects a nation’s currency. As the value of the currency goes down, it takes more of said currency to purchase gold. However, gold bullion investments, considered by many to be a safe haven asset, were historically confiscated by the US government from 1933 to 1973 in order to back up the value of the US Dollar. President Nixon took the United States off the Gold Standard in 1976, which gave the Fed freedom to print as much money as it wanted. Many have called this ability to print money in large volume, and nations with large US Dollar holdings like China are calling for the United States to answer for their printing practices. Many experts believe that the only way to give value back to US greenbacks is to put some gold behind them, gold that would come from the private holdings of US citizens.
Certified gold includes all pre-1933 US coins that have been graded and slabbed by a reputable third party grading agency like the Numismatic Guaranty Corporation or the Professional Coin Grading Service. Investors put non-confiscatible PCGS and NGC graded coins in their portfolios to protect them from rising inflation. These coins also act as a back-up plan in the event that traditional invstments underperform. Certified gold coins are up an average of 1.8% on Monday because of concerns about government confiscation, while the gold spot price is currently down 0.5% for the day at $1000.80.
Senior Staff Writer – Certified Gold Exchange