When high value gold coins were worth only $300 an ounce
December 8, 2009
The value gold coins trampled the $300 mark in December of 2003 and hasn’t gone below that since. Yeah, maybe that information is a little bit old, but its still useful. Back then, the six year high was over three hundred and fifty bucks. Also, for gold to rise by almost thirty dollars back then was also a high rise.
Ever since the war in Iraq, the value of gold coins has also risen considerably.
One interesting thing to note about high value gold coins is that they move opposite of the dollar. When the dollar goes up, gold coins go down and vice versa. All you have to do to check the accuracy of this is look at some graphs or charts of the two together. You can clearly see that they are inverted.
Because the value of the dollar has been steadily deteriorating, that just means that the value of gold will continue to rise. When the dollar was at an all time low, wouldn’t you know it, but gold was at an all time high! With gold prices reaching higher than 1000 bucks an ounce, I’ll bet you wish you invested in some before the Iraq war broke out!
Because of low interest rates, crappy stock market and a host of other problems with the economy, people have been looking for a safe place to put their money. People want a safe investment that they know is at least going to stay the same, if not rise in value.
In general, problems around the world make value gold coins rise. The trouble in Israel for example, caused gold to spike in value temporarily. The logic behind this seems to be that when there is trouble in the world, such as the North Korea nuclear issue, the value of gold, specifically high value gold coins, tends to go up. Apparently the people who decide on this take a look at the world crisis and determine if it has the potential to end the world.
We all know that in a world ending scenario, the major currencies of the top countries in the world will probably be valued at nothing. Therefore, people will need a way to exchange goods and services with one another. What’s the obvious solution? Investing in gold!
Additionally, one way to judge how much gold is moving in either direction is to look at the 65 week moving average. This is simply a measurement that people use to determine if gold is moving up in value or down. If the 65 week moving average says that the value of gold coins is going up, then its a good idea to either sell or hold onto what you have. If its going down, you might think about buying some gold coins.
Before gold broke through to record levels, it was stuck below the 300 dollar mark for quite a while. Now, however, that it has passed those levels, it seems to have gotten stuck at another ceiling.
I’ll bet you wish you had invested in gold before it got really expensive, don’t you? I do too. Before 2004, gold was hovering at around 350 bucks an ounce. Once it passed those levels, however, it continued to rise.