A growing number of investors around the world have grown weary of dollar-sensitive investments. The U.S. dollar and other fiat currencies have been on a downward path of decreased value. Soaring gold prices have resulted from the trend in diversifying with precious metal investments. Coins such as American Gold Eagles have been popular since they were first minted in 1986. Sales of these coins have grown exponentially in recent years as the economy becomes increasingly unstable.
Although each one-ounce gold American Eagle coin has a face value of $50, its market value is currently well over 30 times that value. July has brought about a skyrocketing gold value that many commodity analysts predict will continue its upward trend. American Gold Eagles are also offered in fractional sizes including the ½-ounce, ¼-ounce and 1/10-ounce versions. All of these coins are comprised of 24 karat gold.
American Gold Eagles are prized the world over for their distinctive beauty. The obverse side of the coin features Augustus Saint-Gaudens’ rendition of Lady Liberty, the icon of freedom in the United States. Miley Busiek’s artistic rendition of a male eagle flying with an olive branch in its talons is featured on the reverse side of this coin.
The bullion gold Eagle coin has a value that is roughly equivalent to the market value of gold, which is currently above $1,580 an ounce. The escalating prices of precious metals such as gold and silver reflects investor interest in commodities that retain a lasting value. Gold has traditionally been hoarded in times of economic collapse. The current economic depression has many people trading in their paper currencies for the yellow metal.
Recently, Federal Reserve negotiations designed to provide new monetary policies has left many people feeling increasingly nervous about the future of the US economy. As the Gold Alert recently stated, “While the Fed continues to debate the prospects of QE3, the gold market appears to have already made up its mind. With the gold price breaking out to new all-time record highs, investors are betting that a third round of money printing is not too far away.”
Global investors will continue to place their bets on precious metal investments as long as the dollar and other fiat currency are declining in value. For now, it looks like it will be a long time before such currencies get back on the path to recovery.