October 12, 2009 Posted by James Randolph on October 12, 2009
October 12, 2009 – Some Wall Street analysts have recently questioned the spike in the gold spot price, and whether this precious metal rally could continue. Many investments have a history of receding in value soon after reaching a new all-time high, and some feel that gold could become a “victim of popularity.” If profit taking hinders gold’s ability to climb, gold bullion investors could be sidelined for quite a while. Conversely, a rapid surge in gold’s value could cause profit taking to erupt, which would again repress the gold price. While some investors prefer the rapid-fire, hit-or-miss transactions within the gold bullion market, many people who search for a long-term position with gold find that gold bullion investments requires diligent, daily cultivation. This is simply more attention than some long-term investors are willing to give their gold. Investors who plan to hold their precious metals for years or more, or until our economy is firmly on the right path, may decide that certified gold coins are a better fit.
The Professional Coin Grading Service(PCGS) and the Numismatic Guaranty Corporation(NGC) are the two industry-recognized coin grading services for serious investors. These two companies closely inspect, grade, and sonically seal gold coins for investors who want a long-term stake in the gold market. American investors typically trade the pre-1933 US-minted coins like the $10 Lady Liberty and the $20 Saint Gaudens. Investment-grade coins range from MS61-MS66, and the risk-to-reward ratio on some of these coins is exceptional. Some of these certified gold coins are 200-400% below their historical highs, which means that they could potentially render some tidy profits for investors during the next few years. These growth and loss trend for these coins is more gradual than with gold bullion items, so many longer-term investors prefer these coins to the modern-day American Eagles and bullion bars. Www.PCGS.com includes a complete list of certified gold and silver coins and their national average retail value, although some major gold exchanges can provide prices that are lower than those listed on the PCGS price guide.
Senior Staff Writer – Certified Gold Exchange