Buying Gold Coins in Times of Economic Recession



Once upon a time, collecting gold bars or coins seemed the pastime of eccentric individuals and not part of the mainstream investment world. These days, there are countless financial advisors who would question an investment portfolio that did not include some form of solid asset investment. As the economy has taken a turn for the worse, buying gold coins and bars has become increasingly popular around the globe.

People, both wealthy and those on a budget, are recognizing the importance of diversifying their financial holdings, especially as the economy remains unstable. In the United States, as the base of manufacturing is being moved overseas and unemployment rates skyrocket, investors are losing hope that the U.S. dollar will recover anytime soon. Gold bullion, on the other hand, retains the intrinsic value that paper currency lacks completely.

Over the last decade, scores of investors have lost significant portions of their financial assets. As a result, fear is driving people towards finding safer havens for their investments. Gold has traditionally provided such a haven. Investors worldwide are abandoning currency-based stocks and any other investments that show the slightest hint of risk. Precious metals often take the place of these more volatile ventures.

While the economic recession in the United States continues on into the current decade, other countries, such as India and China, are fairing much better. China currently has the second largest economy in the world and is growing every year. Central banks of both countries are abandoning the dollar for gold bullion as they work to reduce their reliance on this paper currency. For several years, China has been encouraging its citizens to do the same, and civilians have been heeding these recommendations strongly. As a result of global mistrust in the dollar, its position as the world’s reserve currency is extremely unstable.

The current interest in buying gold coins is bigger than ever. Not only do gold bullion coins retain a safe intrinsic value that seems to be growing exponentially in recent years, they also have numismatic value. This extrinsic value based on such things as a coin’s historic value, mintmarks, rarity, physical quality, and other factors, can add tremendous value to a single coin. In the last few years, the U.S. Mint has not been able to keep up with demand as an increasing number of investors and collectors alike are buying gold coins en masse.