During a recent radio podcast, Philip Diehl, a former director of U.S. Mint, had spoken about the outlook for gold prices. As Mr. Diehl claimed, the American dollar will eventually lose some of its value, and that is good news for gold prices as declines in the dollar lead to increases in precious metals, which also include platinum and silver.
Gold currently trades at slightly over $1,100 an ounce, and has lost nearly half of its value in comparison to its peak. That shouldn’t worry long-term investors as gold is still considered to be a storage of value and long-term hedge against inflation. It has been so for hundreds of years and is likely to continue.
At the same time, silver is trading at $14 an ounce, an even higher discount from its all-time high than that of gold. As Philip Diehl stated, investors are better protected when buying U.S. government-issued bullion gold coins since these carry guarantees as to their purity. On the other hand, some precious metals bars are known to have been altered, resulting in bars that are not what they’re supposed to be as their metal composition has been changed.
That’s not to say that all bars have been altered, but rather that buying government-issued coins is more likely in result in pure precious metals coins. Other government-issued coins of reputable quality include Canadian Maple Leafs and South African Krugerrands. The government mints in Austria and Australia also issue quality coins.
Another factor which makes precious metal coins attractive is that investors get to buy and receive an actual asset. This is a viable way to diversify from financial assets such as stocks and bonds.
Presently, Mr. Diehl runs U.S. Money Reserve, one of the largest distributors of gold and silver coins in the world. The company offers investors a wide variety of government-issued gold and silver coins, as well as platinum coins. LIke them on Facebook.