Why Acquire US Gold Coins?

The US Mint announced recently that the sale of US gold coins could reach 240,250 ounces soon. The price of gold has also reached fresh highs, after posting a record high of $1,577.57 in the first week of May 2011. The European debt crisis and conflicts in Africa and the Middle East, coupled with a weak dollar and fast growing inflation, have fuelled the price rise. The demand for gold coins is likely to continue on account of deteriorating global economic conditions, the US Mint affirmed.

The latest coin sales figures (number of coins sold) of US Mint bullion are indicative of the favorable near-term outlook of US gold coins:

US Gold Coins: Top Reasons to Own American Eagle Bullion Coins

First minted in 1986, the American Eagle gold coin series are a good asset protection option. These coins are minted in compliance to the 22-karat gold coinage standard. Each coin contains a set weight of pure gold, which is derived from newly mined sources. The balance of the coin composition consists of copper and silver, which is added to improve the coin’s durability, and increase resistance to scratching and marring.

Additionally, the American Eagle gold coins have a rich history behind its coinage. It is designed by the renowned American sculptor Augustus Saint-Gaudens. The design on the reverse of the coins features a family of eagles, which is symbolic of unity and family tradition.

Some other reasons acquire the American Eagle US gold coin series are:

Government Guarantee
These coins are one of the few investment-grade US mint bullion coins. The weight, purity and content of the American Eagles are guaranteed by the Unites States government. These coins can be included in the Individual Retirement Account (IRA).

Portfolio Diversification
Gold coins are increasingly being regarded as a sensible and efficient component of creating a diversified portfolio. This is because the factors undermining the gold prices are usually different from the forces that effect the price of other financial assets; thus, helping lower portfolio volatility. Michael R. Haynes, CEO of American Precious Metals Exchange (APMEX) supported the thought in a recent interview with CNBC, “Historically, precious metal investing has provided a hedge against economic instability, sovereign risk, and the lowering of U.S. currency values through inflation and the overprinting of currency.” American Eagle gold coins are a convenient and affordable way of adding gold to diversify your portfolio.

US Gold Coins: Outlook for 3Q 2011

Gold price is projected to continue its upward movement, and analysts have predicted that the prices may soar to the US$1,700 an ounce mark by the end of the third quarter of 2011. Investment analyst Ong Yi Ling, Phillips Futures, said: “(Only) with acceleration of economic recovery and consumer confidence will there be a return to more risky assets.”

Other industry observers have emphasized on using gold as a safety net. Albert Cheng, MD of the World Gold Council, refereed to gold as an insurance to portfolio. “As an insurance policy, you will only want to use it when you are in a distressed situation.”

However, analysts have suggested that investors shouldn’t put all their eggs into one ‘gold’ basket. Sean Mulhearn of the ANZ Bank stressed on the need to have a more balanced investment policy to reap the benefits of investing in gold.