October 16, 2009 Posted by James Randolph on October 16, 2009
October 16, 2009 – Many of today’s investors have grown weary of the rock-bottom interest rates that are offered by our nation’s banks, and some of these investors have found their way into the certified gold coin market. Across the United States, savings and certificate of deposit(CD) rates are abominable, so a large number of investors have begun to explore alternative methods of investing. The average savings account earns 0.4% interest, which would only earn an investor $40 in an entire year. CDs aren’t faring much better, with the average yield on a two-year CD presently standing at 1.47%. There are many other options available, so not all investors choose certified gold and silver as their diversification plan.
Annuities are one option that is available to investors, and this type of investment could yield more than a regular bank account, but accessing these funds could draw the ire and the penalties of the annuity issuer. Bank loan funds are another viable option, and these investments performed quite well in 2009. Investors who seek a stable investment should be cautious of bank loan funds, however, because the 30% loss they recorded in 2008 is a clear sign of volatility. Many investors who are looking for a more secure way to store their wealth are not primarily concerned with making a fortune within a small amount of time, or they would not place their funds in a bank account in the first place. Certified gold coins provide a historically proven hedge against demand-pull inflation, which is the very type of inflationary pressure that many economists expect our dollar to suffer over the next few years. In addition to gold’s ability to move against inflation, certified gold coins are completely private, which is a key benefit for many security-minded individuals. Some coins that have been certified by the Professional Coin Grading Service(PCGS), the industry-recognized numismatic company, have vastly outperformed our traditional markets during the last nine years, and many analysts believe that gold prices could rise for the next decade or more. Regardless of the potential profit that may be rendered by precious metals, investors can rest assured that the safety that accompanies certified gold ownership cannot be easily taken away.
Senior Staff Writer – Certified Gold Exchange