Gold Coin Investing

As the years have passed, the price of gold has increased steadily and many look to the yellow metal as a secure investment. Gold coin investing is one way to increase your financial portfolio and to be sure that you will always have a tangible asset regardless of what happens to the economy.

In 1970, gold sold for an average of $37 an ounce a price fixed for 35 years. It began going up gradually each year, but really took off after 1975, when the federal government lifted the 42-year-ban on private ownership of gold and by the end of 1979, it was being sold for almost $500 per ounce.

In 1980, it opened at roughly $600-800 an ounce, but by 1989 had dropped down to an average of $400 an ounce. In 1990, gold ranged from $300 to $400, but by 1999 it was going for $200 to $300. In 2000, it ranged from $200 to $300. And at the time of this writing, in 2008, gold is selling for $800 to $900 an ounce, and pundits expect the price to keep going higher and higher.

Should you invest now, or should you wait for the price to level off or even fall? That can be a very difficult decision. The price of gold is tied to the United States economy. If the economy is doing well, the price of gold will fall, if the economy is thought to be in recession, the price of gold will rise, and keep on rising.

Just as the prices of your coin collection are not guaranteed - it doesn't matter what a coin is graded at, if no one wants to buy it you'll have to sell it for a lower price – so consequently, the price of gold is not guaranteed.

But investors want gold for a myriad of reasons. It will never go down to $37 an ounce again, for a start. If currency falls away, gold will always be there as an asset that can be traded and bartered for a variety of goods.

Gold bullion coins, unlike numismatic valued coins, have their risks as investments though. They are nuch more closely tied to the price of gold rather than any collectible value and are much more volatile in price. Rare coins from the United States' glory days between 1795 and 1933 are a different breed altogether. Their value can be far and above their gold content, because of their rarity and numismatic value.

But there again, if a horde of coins is found - as has happened in the past, for example the gold coins recovered from the SS Central America which sank in 1857 when it was found in 1985 changed the value of many pre 1857 gold collectible coins. As can happen when a lost treasure is found, a coin that was rare may turn out to be rare no longer. Although if the coins are marketed specifically as having been recovered from a shipwreck that would undoubtedly drive up their price and possible drive down the price of coins from the same years as the recovered coins.

If you are thinking of investing in gold bullion or collectible gold coins, discuss it with your financial advisor to ensure that it's a good fit for your long-term future and your investing goals.