Certified Gold Market Posted by James Randolph on September 13, 2010
September 13, 2010 – What could become of the certified gold market after the gold price’s recent roller coaster-like months of July and August? Dipping as low as $1220 per ounce and jumping to an all-time high of $1164 two weeks ago, many household investors and professional economists are at odds over what will happen to gold prices in the immediate future.
Commonly-traded, investment grade gold coins tend to trend with the gold spot price, although sudden fluctuations in the gold spot price are usually not seen in the certified coin market until several days or weeks later. For this reason, two schools of thought have emerged among gold investors and prognosticators.
Gold "day traders" are those who observe technical factors and USD movement to take advantage of "valleys" and "peaks" in the gold market. By investing in large volume and taking profits within 1-14 months, this swing trading strategy can be quite successful, even if gold price trends downard in the future. You can increase your chance of success with this strategy by purchasing COMEX-approved bullion ingets, or bars, as many large institutions have done recently.
Household investors are generally more concerned with hedging their wealth against an inflated currency and lagging mutual funds. These investors prefer the tangible safety of physical gold to paper assets or gold "funds" which don’t allow physial delivery of the metal in a national emergency. Household investors who seek a prvately-held insurance plan in the form of gold tend to feel more secure with certified gold coins in their possession instead of raw bullion bars or coins.
PCGS certified gold coins have historically outshined bullion because of their government non-confiscatability and their numismatic premium that tends to grow over time. Bullion products have increased over 300% since 2001, and investors who employ a rapid-fire buy/sell strategy have seen even greater returns. On average, coins tracked in the certified gold market have seen profits between 350-480% over the same time frame.
Both bullion and certified coins have their advantages and disadvantages, as is the case with any stock, cash account, or property. If you are digging for more information on the certified gold market or you are ready to buy, sell, or trade gold, request your free copy of our Gold Insider’s Tutorial or call one of our non-commissioned specialists at (800) 300-0715 today.
Senior Staff Writer – Certified Gold Exchange