
October 29, 2009 - Many precious metal investments have rendered substantial profits to their owners this year, but not all precious metal investments move parallel to one another. As is the case with homes, automobiles, and stocks, there is no one metal, bar, or coin that is the beat-all, end-all investment. We have seen some small decreases in precious metal spot prices this week, and today’s spot values are still significantly below last week’s levels. Gold, silver, and platinum were repressed throughout the week, but the recent pullback in these metals’ spot prices appears to be easing.
The precious metal rally that started in 2001 looks to continue for another three years at least, unless our lawmakers are able to solve our nation’s increasingly dire financial plight. Investors who believe that our economic troubles will be resolved or within the next year should invest in bullion items. The US Mint produces gold, silver, and platinum bullion coins, under the American Eagle coin program. These coins are highly sought after by short-term investors who want a hedge against the possible acute inflation of US currency.
Long-term investors should not purchase US Mint-produced bullion coins, or any other bullion product. Instead of vesting their funds in bars or bullion coins, investors who plan on remaining in the gold market for years or decades routinely purchase certified gold and silver coins. These investments have historically outperformed their bullion counterparts, and their non-confiscatable classification by the US government makes them the ideal choice for investors who want to take physical delivery of their gold without fear of a future government recall. Investors who are new to the precious metal market should contact a reputable dealer who can break down the advantages of the different precious metal products that are currently available.
Danny Burns
Senior Staff Writer - Precious-Metal.org