Daily Rare Coin Update
April 21, 2009 – Saint-Gaudens coins are considered a solid precious metal diversification because they have a tendency to maintain value as the spot price of gold fluctuates moderately, and today this is being witnessed by investors who own them because spot prices are a bit lower while the coins remained untouched. The Saint-Gaudens coins along with other certified investment grade rare coins are known to be a solid way of storing value when fiat currencies are experiencing severe problems. Currently, the United States Dollar in particular is on the verge of experiencing these problems, be it from deflationary or inflationary pressures. Short-term market movement with the dollar is showing a correlation with the value of gold, even though historically they run in adverse directions. This is being caused by large-scale risk aversion by investors who want to stay as far away from the problems that corporations are experiencing at the moment. Unfortunately, the dollar could become devalued as a direct result of our excessive overprinting in order to supply cash for the latest stimulus and bank bailout packages.
By the end of the trading day, Saint-Gaudens coins have remained flat while the gold spot price has fallen to $883.30 per ounce, a decline of $1.50 for the trading day while the silver spot price has fallen to $12.06 per ounce, a decline of four cents for the trading day. It’s very fortunate that the popular investment-grade certified rare coins have the potential to maintain value during these heavily fluctuating economic times, and wise investors can use this to their advantage when maximizing the potential of a precious metal diversification.
Shawn Penny
Senior Staff Writer – Rare-Coin.org
