Is Gold Finally Headed For A Bubble?
With the United States and the world economy as well heading for a possible collapse or at the very least some serious trouble, many are wondering if gold will soon be experiencing a bubble and moving to an ever increasing price.
The main cause of this would be complete irresponsibility in the governments of the world, especially from the United States Government. With 2 economic stimulus packages under its belt that can never work and talk of another on the horizon, hardly any of our elected officials in Washington DC see the utter folly of trying to get out of debt by creating even more debt. Anyone with even an ounce of sense understands that you can’t pay off your bills by creating even more bills. This current financial thinking is spelling a fast track disaster for our nation.
Much of the smart investing public is seeing around this insanity and are buying gold coins, bullion, silver and other precious metals. Gold coin dealers and auction sites such as eBay are experiencing an upsurge in sales of these commodities. Gold has not always been the best investment because it has lost as much as 40% of its value in the 1980′s, but economic times are looking seriously different now and into the future of the world economy.
To finance the senseless stimulus packages, the Federal Reserve and other central banks of the world are creating liquidity by simply printing more money. Unfortunately they don’t seem to understand that every dollar they create out of nothing devalues every other dollar already in circulation. As all other dollars lose value this is essentially what causes inflation and results in higher prices. As prices go up gold becomes more valuable and the wealth you have invested in it is preserved.
As the gold bubble is created it is obviously smart to buy now and sell when the price reaches the top. That’s not always easy to do, but when people are employed, central banks stop printing money and the economy starts to really recover, not when President Obama just hopes and says it will, that will be a good sign the gold bubble is going to burst and it’s time to move back to cash. But, all indications are that isn’t going to happen for several years, at least not until the current financial wizards in Washington stop their orgy of irresponsible spending.
1933 Gold Double Eagles Still In The News
Currently there is only 1 1933 St Gaudens Gold Double Eagle coin in the world that is legally available to be owned and sold and that is the world’s most valuable coin with an estimated worth of over $8 million. What makes this coin so unique is the story behind it and the simple fact that there is only 1 1933 coin available.
However, all that could change if the Pennsylvania Joan Langboard family gets their way and has 10 of these ultra rare coins returned to them after the Secret Service seized them in 2004 while the owners were trying to have them authenticated. Recently PNG has filed an Amicus Brief in the case challenging the government’s stance that these coins are not legal tender.
PNG’s position is that:
WHETHER 1933 DOUBLE EAGLES ARE “UNITED STATES COINS” DOES NOT DEPEND ON WHETHER THEY WERE LEGAL TENDER WHEN THEY WERE MADE
Because:
THE GOVERNMENT’S PAST PRACTICE WITH RESPECT TO ALL OTHER NON-ISSUED COLLECTIBLE COINS IS INCONSISTENT WITH ITS POSITION IN THIS CASE
I’d have to say the PNG certainly has a point however, if these coins are returned to their owner and consequently made into legal tender it could have a negative effect on the price of the Kink Farouk gold coin that was sold back in 2002 for $7.6 million.
These coins will still be worth millions because of their rich history and extreme scarcity, but probably not anywhere near the $7.6 million price. Obviously 10 of these coins at that price would sell for over $75 million. If these coins are eventually returned to the family that claims ownership, they will definitely be a valuable treasure and who knows, maybe one day they will be up for sale. If that happens and you plan on grabbing one of these treasures, you better have very deep pockets.
2009 Ultra High Relief Double Eagle Gold Coins For Sale
The United States Mint started selling the 2009 ultra high relief double eagle gold coin back on January 22 and this extraordinary coin has been a sure fire hit with collectors and investors alike. The coin design is the original as created by Augustus St Gaudens in 1907, but with a few minor technological updates that now make the coin possible.
Originally minted in 1907 the ultra high relief was considered one of the most beautiful coins ever to go into circulation, but because of the tiny edges on the tops of the coins bankers didn’t like them because they were nearly impossible to stack in their vaults. But now because of more modern minting techniques a slight edge has been given to the coins and collectors are going crazy over them after anticipating the coin for many years.
Probably the best place to find one of these coins and get it in a timely manner is through the eBay auction site. Prices range from $1,450 or so for an ungraded coin to around $2,000 or slightly more for one graded at MS 70. Those MS 70 held on to for many years could prove to be a very wise investment. These coins will only be minted in 2009 and will never be available again except for from private collectors.
The coins are 99.99 percent pure making them 24 karat gold and contain 1 full ounce of gold. If you are in the market for one of these gems don’t miss out and have to end up spending a lot more in the years to come. You can see a few listings of the 2009 Ultra High Relief coin here.