There was a time when gold coins were part of America’s money supply. Gold coins were in circulation until 1933. It was during the Great Depression when the government removed gold coins from circulation. Citizens were ordered to trade their gold coins for dollars. While most folks obeyed the order, some hid their gold because they knew gold was worth more than paper money.
Today, gold is still worth much more than paper money. All nations in the world have long ago given up the gold standard. Today, we are left with fiat money which is backed by nothing of substance. Yet, it is these same flat currencies that have contributed to the current financial difficulties we all struggle with daily, as many nations are mired in debt. High food and energy prices and the high cost of living have eroded the mighty dollar. Yet, you can protect against these financial woes when you buy a gold coin. To be more precise, gold bullion coins.
Gold bullion coins are minted by governments and offer a handy way to invest in gold. The American Gold Eagle and the American Buffalo are both fine examples of gold bullion coins. While these coins do have a nominal face value, their real worth is based on the gold contained in the coin and the gold’s spot price. Since the gold spot price is high, over $1600 per ounce, and expected to peak at $2000 per ounce gold is an excellent investment and haven.
Simply acquiring more flat dollars does not create true wealth. This is because flat currencies can lose value fast. Gold always has worth, and typically the worse financial conditions are the higher gold’s spot price is. Considering that Europe is in economic turmoil, and Spain and Greece might be going into depression helps keep gold high. Gold bullion coins are highly liquid, so if dollars are needed in a pinch you can easily sell your gold.
The gold standard is not coming back, however, you can back your assets with gold. There is enough economic turmoil in the world to keep gold going strong for the foreseeable future. It is advisable to buy gold now before the price shoots up to $2000 per ounce. The choice is this; you can invest in paper money which is uncertain at best, or buy gold bullion coins which have a long history as a hedge.