October 16th, 2013

Gold coin collectors may get good news from Mint

By MintState

If stocking up on gold coins is part of your collecting strategy, it may be a good time to start loading up on the precious metal.

In case you haven’t seen the headlines, gold has been getting slammed in the last few months, experiencing price pressure as U.S. government officials struggle to comprise on the impending debt crisis. So what does that mean for coin collectors? Well, based on the falling price of gold, the U.S. Mint will almost certainly be forced to lower the price of the collectible gold coins it offers. In fact, if the price of gold settles in below $1,300 an ounce for the long haul – which seems to be the case, since it closed at a price of $1,282 as of today – collectors may reap the benefit of the sagging commodities market. Take a look at this link to check out some of the projected reductions in popular gold coins sold by the Mint.

For example, the cost of the popular gold Buffalo coin is anticipated to fall by $50 apiece, the same drop expected of the enduring one-ounce American Eagle gold pieces. While other offerings are likely to experience smaller price declines (in terms of real dollars), they can still be considered decent discounts for those interested in bolstering their collection.

As with any potential investment purchase, gold coin connoisseurs should keep the long-term in perspective before taking the leap – particularly if they are new to the precious metals market. While a price of $1,300 an ounce for gold sounds low, the metal is still up substantially if you look at trends over the past 5- and 10-year periods. In fact, if you had sought gold back in 2008, you could have bought it for as little as $750 an ounce depending on the time of year. Go back five more years to 2003 and that same ounce would have cost you less than $325 if you had purchased it at the right time. (You don’t even want to know how little gold went for 30 years ago).

With that history in mind, collectors should remember that nothing is given, and there’s nothing to say the price of gold won’t fall that far in good time. But if you enjoy owning gold (or like the feel of gold, if you’re weird like William Devane), then now may be a good time to buy.

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