Coins have been hoarded for thousands of years since the time of Ancient Rome. Modern-day investors continue to buy gold coin investments in order to secure financial wealth. As the dollar and other global paper currencies lose value, commodity investments have become more important than ever to today’s investors. As a result, the gold price is currently trading above $1,750 a troy ounce. While this is lower than the high of about $1,924 an ounce a few months ago, investment analysts expect new records to be hit soon.
Investors who buy gold coin investments often focus on bullion coins that are mostly valued for their intrinsic precious metal value. As gold has taken on a prominent place in the investment market, coins such as gold American Eagles and Canadian Maple Leafs have been in high demand. American Gold Eagle coins, introduced by the United States Mint in 1986, and Canadian Gold Maple Leaf coins, introduced by the Canadian Mint in 1979, have increased dramatically in value since their inception. American Eagles are made of 22-karat gold while Canadian Maple Leafs, at 24 karats, offer an even greater precious metal content.
The current push to buy gold coin investments is being sparked by economic uncertainty in Europe. David Beahm, vice president of economic research at Blanchard & Company Inc., said, “What's driving gold right now is that investors don't know what to do. All the rumors in Europe are making people worried. Gold may be volatile but I can't see a reason why it would go down much. I think a price of $2,000 by the end of the year is still possible.”
Gold coins provide a secure store of wealth. On the other hand, the value of paper currency such as the dollar and euro, depend heavily on government policy and do not contain any intrinsic value. Gold has intrinsic precious metal value. While that value can fluctuate, the general trend is for gold prices to continue on an upward trajectory over time.
Currently, gold is in a bull market, which is why the yellow metal has caught the attention of so many investors around the world. Like all commodities, the gold price is driven by supply and demand. Many investment analysts expect the demand for the precious metal to remain high. Most investors are expecting great things for gold investments in 2012. As a result, gold coins and gold bullion have become increasingly popular investment vehicles.