The following is a guest post from the webmaster of 401k Rollover Answers.
With the economic downturn, many people have turned to gold as a stable and ultimately practical investment. Whether you are thinking of buying American Eagle gold coins or selling gold coins you bought 20 years ago, there may not be a better time than right now.
Some financial experts say that gold coin prices are only going to dip as the economy improves. Who can say what the future might bring? But having the weight of a $50 American Eagle can feel reassuring in the palm of your hand. Each of the coins is minted to exacting standards and must weigh in at a troy ounce of gold (also measured in grams at 33.931 grams). The gold itself is 22 karat, mined in the United States and nowhere else. And while it does contain some silver and copper, these other metals are simply to help stabilize the overall coin.
American Eagle coins were introduced in 1986. I should say re-introduced. The $20 double eagle was a popular denomination for almost 30 years, ending circulation in 1933. The currently minted coins are created at the US Mint under exacting standards. Each coin is hand-inspected for imperfections. Augustus Saint-Gaudens’ design of Lady Liberty deserves no less than this. The quality and purity are part of the reason why the Eagle is the most popular gold coin in the US.
Whether you want to add some diversity to your portfolio or have some handy cold, hard cash on hand for an emergency, gold coins or technically, gold bullion coins might be your answer. The idea that you have both a coin as well as a commodity, in and of itself, is attractive to many investors. In these uncertain times, perhaps having some precious metals on hand is not a bad idea. During the disaster of Hurricane Katrina things never got bad enough to warrant going off of paper money, but if the government were hit with a large-scale crisis, gold coin might revert to our main money.
At the same time, with the sluggish economy, some people are out to sell gold coins instead of buying them. This could mean great news for a savvy investor. Take a look online. Many sites are selling American Eagle coins and you might find a great price. Pay no attention to some of the prices you see from individuals on eBay and the like. Buy and sell only with well established and reputable companies. Every day you can check the price of gold and see if your investments are growing or shrinking. Over time, it would seem that gold, like many precious and limited commodities, can only increase in value.
There are a few important points to remember. Buying and selling gold is not for the faint of heart. The prices can fluctuate quite a bit. Don’t go into debt to invest in gold and don’t keep all of your emergency money in bullion. If you want to diversify and you want to be fully prepared in case of long term emergency state, then have some gold but don’t sink your portfolio by having only precious metals invested.