Gold As An Investment

The American public has only been able to own gold for investment since 1974. Prior to that time, it was only possible to own collector coins, which are sold at a huge mark-up. In 1933, President Roosevelt ordered a gold call, where everyone had to turn in their gold pieces. The gold bullion coins that people are using for investment are sold at a much smaller mark-up, and the value is in the actual price of the gold.

Shortly after the reintroduction of gold as an investment medium, the South African Krugerrands became very popular and set the standard for today's gold market. While the Krugerrands are no longer imported into the United States for investment, they are still very popular. Today, the American Gold Eagle is the best selling gold bullion that is used for investment purposes. During the 1980s and 1990s, gold took a back seat to many other types of investments.

Today, the market is seeing a resurgence of people wanting to purchase gold. Since 2003, the demand for gold as an investment has risen by approximately 280 percent. The price of gold is determined by the current supply available and currently, demand remains high. People believe that the purchase of gold will protect them from the uncertainty and instability of the current market. The purchase has been described as one of the most stable investments one can have. Sometimes people will allow their investment to do double duty. They will purchase a designer piece of jewelry out of gold so they can have a thing of beauty as well as an investment.