As the US economy roars along gold prices fall. It’s a simple matter of allocation of capital. Investors see more upside in places like the stock market and real estate than in precious metals, so that’s where the money goes. But gold investors need not despair. Low prices are less a disaster than a buying opportunity.

Is Gold on Sale?
From a high of $1340 in February 2019, an ounce of gold has fallen to $1277 on May 1, a drop of 4.7%. Easing of the tariff standoff with China and progress on trade agreements with Mexico and Canada are likely to add more incentive for capital to move out of gold, increasing downward pressure on the metal’s price.

While signs are that this trend will continue, at least in the short tun, gold is also sensitive to political uncertainty (and accompanying economic woes), and there’s enough trouble simmering in enough places for investors to keep a wary eye out even while they reap the gains of the current boom in other markets.

The Trouble with Timing
Some investors like to brag about how they timed their purchases perfectly and reaped windfall gains in just a few days. But as someone once said, predictions are tricky, especially about the future. Chances are the braggers were more lucky than smart since markets are skittish and short-term peaks and valleys are common. Besides, you don’t hear the stories about the losers who mis-timed. Short-term strategies like day trading are for gamblers. Smart investors look at the long term, and that’s where gold shines.

Looking Long
In the 45 years since President Nixon unpegged the dollar from gold, the metal has outperformed stocks and bonds. On the other hand, stocks and bonds have done better over the past 30 years, but if you look at the 15 most recent years, gold has won the race. It has grown by 315% compared to 58% for stocks and 127% for bonds.

So what about the next 15 years? Frankly, your guess is as good as ours. We’re in the coin, currency, and bullion business, not financial advising. When we look at past performance and try to project good guesses into the future, what we see is that a good balance of assets gives the best long-term outlook. And that gold is part of that balance.

Hedging Your Bets
Gold has long been considered a good hedge against inflation, and inflation seems here to stay. Gold bullion is a popular asset to hold, but collectible gold coins are another option to consider.

Besides their bullion value, gold coins have a numismatic (collectible) value that can sometimes outpace the value of the gold.

Collectible coin value depends on many things, principal among them quality and rarity. But even common gold coins such as American Gold Eagle proof and bullion coins gain in value as time passes. While their principal worth remains in their bullion value, over time their collectible value increases, too, adding another benefit to them as investments. American Gold Eagles and other US gold coins are also eligible to include in IRAs and other tax-deferred savings programs.

The Great American Coin Company offers uncirculated American Gold Eagles and other US bullion coins at attractive prices. They’re just some of the many ways we serve collectors and investors around the world. Visit our website, greatamericancoincompany.com, for more information. And be sure to check back often as our selections are constantly changing.