September 29, 2009 Posted by James Randolph on September 29, 2009
September 29, 2009 – Certified gold coins graded by the Professional Coin Grading Service(PCGS) and the Numismatic Guaranty Corporation(NGC) are poised to eclipse their record-high values that have prevailed since the 1970s. The MS64 Saint Gaudens and the MS61 Lady Liberty certified gold coins have outpaced the movement of gold bullion products almost three-to-one since President Barack Obama has taken office. Many certified gold coins have outperformed bullion for as many as 18 consecutive months, while more investors tenaciously attempt to extract every possible modicum of safety for themselves and their families.
The strong trend in pre-1933 US gold coins is not a new phenomenon. Hyperinflation and even stagflation, which is a potent mix of inflation and a stagnant economy, erupted in the 1970s, and many investors sought frantically for an effective means to protect their wealth. Interest-bearing accounts, stocks, and bonds all clung for dear life as banks closed, buying power was lost, and inflation reached double-digits. President Richard Nixon removed the United States from the Gold Standard in 1976, and from that point forward, government officials at the Federal Reserve were able to print and spend virtually as much currency as they liked, with no legal consequences. There were consequences, however, as the framework of our economy buckled under the weight of far too many dollar bills. Savvy investors who tracked cycles from the Great Depression knew that commodities like gold could be poised to rise, and some 1970s gold investors were rewarded with 1000% returns on their initial investment.
Economists believe that current trends could continue to parallel those from the 1930s and 1970s, and they buy mint-state graded gold coins as a way to counter inflation and to boost a beleagured portfolio. More importantly, certified silver and gold coins are officialy exempt from government confiscation should the Obama administration decide to reactivate President Roosevelt’s 1933 executive Order. More information on gold bullion confiscation is readily available at www.Gold-Bullion.org for investors with an eye on preservation of wealth.
Senior Staff Writer – Certified Gold Exchange