Over the past 30 years, American coins have been the most popular investment/collector gold coin. There are many reasons for their popularity: their large size (almost a full ounce of gold); their stunning artistic beauty; their affordability; and their great liquidity. More simply put, their benefits are: privacy, protection, and profit potential.
Why US Gold Coins
The greatest commodity bull market of our generation is unfolding around the globe driven by unprecedented economic growth from China and India, the two most populous nations in the world. The financial emancipation for over 40% of the earth’s population will continue to propel the precious metals market.
Since 2001, gold has increased in value over 180%, far surpassing the growth of the U.S. stock market, mutual funds, real estate, CDs and treasuries.
The investment world is in the process of a major paradigm shift away from paper financial assets into tangibles. For astute investors and savers who position themselves properly in the precious metals market, the next 5-10 years could prove to the investment “opportunity of a lifetime”.
The Smart Choice for Gold Investors
1970’s and Now
Although many of the same types of economic and geo-political external forces of the 1970’s exist today, the overall scope and proportions of the problems are much greater. Similarities exist such as enormous was expenses, rising oil prices, rising inflation, climbing government spending programs, and a shift in Washington political power from a conservative bias to a liberal bias. However, we now face many new and even more around 12% compared to today’s negative savings rate. Beginning in 2008, the first wave of baby boomers will start receiving government entitlements, putting a huge new strain on our giant budget deficit. This generation could very well witness the death of the dollar in terms of its international status as the world’s reserve currency. In a world literally drowning in a sea of fiat paper currency, created by the worlds central banks, its little wonder that investors and saver are turning to “real money”, gold.
Who are the Big Buyers of Gold?
The current bull market in gold and other commodities in NOT being fueled by Americans. In fact, the average American investor doesn’t seem to be aware of the scope and magnitude of this market.
Most of the gold buying is coming from India, China, Russia, and the oil rich Middle Eastern nations. Each of these nations have long had keen interest and love affair with gold.
Because American investors have recently suffered two excruciating losses, both in the internet stock bubble as well as the current implosion of the real estate bubble, I believe perceptive American investors will soon re-enter the precious metals market. In fact, look for a strong surge when gold pushes above the $850-1,000 per ounce level.
How Long Will Gold Rise?
The average primary bull market in commodities has lasted roughly 18-20 years over the past two centuries. The current bull market began in 2000, and we are only now entering the second phase of this market. The second phase is always the longest and broadest cycle. When adjusted for inflation, the price of gold would actually have to top $2,170/ounce to better its 1980 high.
Several of the top commodity experts in the world have predicted gold to eventually reach the $3,000 to $5,000 level before the current bull market climaxes.
If you have not already positioned yourself in the gold market, now is a great time to move aggressively into physical gold. We are just now entering the second phase of a three-phase bull market.