Demand for Twenty Dollar Saint Gaudens if Growing

The Twenty Dollar St. Gauden gold coin were minted by the US Mint from 1907 to 1933. They are now considered part of what people call numismatic gold coins or rare gold coins. The design of the $20 Saint Gauden is still renown for its amazing artwork by collectors. Due to the scarcity and the inherent gold value the $20 St. Gauden has potential profits in owning these rare coins.

The Demand for Twenty Dollar Saint Gaudens if Growing

One key driving force that separates the $20 St. Gauden from gold bullion coins like the American Gold Eagle is that production has stopped for Saint Gauden gold coins. The finite number of these gold coins enhances their value beyond the pure gold content.

There are many factors contributing to the demand for rare gold coins like the Twenty Dollar St. Gauden. One major factor is the broad appeal as this gold coin is widely accepted for its value by gold coin collectors and gold buyers looking for a hedge against inflation. Though the $20 St. Gauden is a rare gold coin the supply is large enough to allow the market to buy and sell the coins on a frequent basis. Liquidity is an important factor that makes rare gold coins an attractive buying opportunity.

Besides the rarity factor the Twenty Dollar St. Gauden is also almost pure gold. The gold purity is 0.900 with gold itself having inherent value. The price of gold has never been zero which is not the case from some stocks that have dropped sharply in people's portfolios. Recent increases in the spot price of gold also affects the price of rare gold coins, too.

One major difference between the Twenty Dollar St. Gauden and the American Gold Eagle is that the sale and purchase of American Gold Eagles is recorded with the IRS while Twnety Dollar Saint Gaudens are considered a collection and not subject to these requirements. The owning of rare gold coins is considered a private position in gold.

Rare gold coins like gold bullion coins are seen as a way to preserve wealth. Many of the factors that cause forms of investments like stocks, bonds, and real estate to decrease in value cause gold coins to increase in value. Important to understand that past performance is not a guarantee of future gains though supports the greater understanding of the value of owning rare gold coins.

Sinking Economy and Bouncing Gold

Since early times, economy and rare gold coins have shared an inverse relation. When the economy goes down, the paper currency and stocks follow the suit. During these times, gold becomes an attractive proposition for investments and hedging. When gold surges, the speculators also buy in, further fueling the valuations. It is interesting to note that over the last decade, gold has advanced by almost 400 percent! Amidst the discouraging world economic scenario and fears of a double-dip, gold touched an all time high of $1,254 per troy ounce on June 8, 2010.

Jason Toussaint from the World Gold Council believes, “Gold has a 5,000-year track record of preserving wealth. During times of market crisis there's a flight to safety, and gold makes a strong candidate for a long-term strategic asset.” Even after the dissolution of the Gold Standard worldwide, the demand for gold never receded. Economic prudence remains the most important driver of its prices. Professor Fred Foldvary, from the Economics Department of Santa Clara University insists that at any given point of time, the metal has a fixed international price and is used as virtual money. Although, technically gold is not a part of any barter trade, its set international value imparts it the character of money.

An ardent follower of gold, Foldvary sums up the relation between the Government policies, market forces, and the gold prices, over the last three decades. The oil (1973) and energy (1979) crises left a condition of stagflation in the US. The value erosion of the paper currency made gold and real estate investments, viable risk coverage strategies. The metal touched $850 per troy ounce. To contain the exorbitant price levels, the Federal Reserve sucked liquidity out of the market. This led to a severe recession between July 1981 and November 1982. Gold prices crashed when people had to sell off their gold holdings, held in the form of investment and even jewelry. The prices tumbled to the new lows of $250 per ounce. Since then, in the times of economic instability, gold has surged to record levels.

The analysts from almost all the quarters are betting on a further jump in gold prices in the coming time. UBS predicts that gold will be in the proximity of $1,500 per ounce by the year-end. US based financial planner, Beck believes that the growth story will continue in the time to come. “When we eventually get inflation, maybe in 2012, gold will continue to climb all the way into 2017. And then I'd look to sell,” she says.