The details listed here are not arranged in any particular order. Historically, they were among the most famous. Each copy remained in demand for decades.
American Eagle, 1 Ounce, $50 ?
The American Eagle series, first released in 1986, was a success with investors. The two main reasons are the high purity of the gold contained in it and the relatively low prices compared to the spot price.
American eagles are available in four different sizes. However, 1 oz. the gold coin mentioned here offers the best value for money for investors.
The eagle contains a troy ounce of gold with a fineness of 0.9167 and has a nominal value of $ 50. Like all gold coins offered in this investment series, the sample has an official legal tender. Although, of course, it would be unwise to give away this precious gold coin at face value.
This is at least one of the most commonly used gold investment coins included in investment portfolios. Due to its exceptional popularity in the financial world, it is very liquid and therefore provides excellent return on investment.
Has The Demand For Gold Led To A Shortage Of Coins In Russia?
In the context of the pandemic crisis and turmoil in the financial markets, Russians began to look for new investment instruments. The richest Russians are increasing their investments in exchange-traded gold – in other words, in shares of specialized “gold” funds.
Those who are poorly versed in currency instruments or who do not have brokerage accounts are also actively transferring their savings into gold. Thus, in Promsvyazbank in spring and summer, the inflow of funds to depersonalized metal accounts (WHO) increased by 15%, and the demand for gold coins jumped by 20%, the Prime agency reports.
Russians’ interest in gold can be understood: six months ago, gold futures were on the stock exchange
Analysts interviewed by the newspaper.Roux noted that in general it is always necessary to have savings on gold, so in a broader sense there are no ideal or bad moments for buying precious metals. And it’s not just about gold.
Alexander Oskin, an analyst at the trading department of the Russian stock market Freedom Finance, notes that the demand for gold and gold assets will continue to grow in the coming years. The current growth in prices and demand for gold and gold assets seems to be a steady trend due to the soft or ultra-soft monetary policy of the leading countries of the world over the past 12 years.
“From the point of view of estimates based on the dynamics of indicators reflecting the dynamics of commodities and money supply, the target level of gold prices over the next one to two years is $ 2,500 per ounce in the baseline scenario,” the analyst said. “Positive and negative scenarios for the gold market within the framework of this rating system for the next year with a probability of 60% are US$ 1,700 and US$ 3,150 per ounce, respectively””
The interlocutor of the newspaper.Ru D’alari Gold agreed with the expert’s opinion. The representative of the company noted that about 10-15% of savings should be stored in physical gold, and first of all in gold coins.
“Coins have many advantages: there is no VAT as a legal tender. Coins are more liquid than bullion. They can be sold to a wide range of individuals and legal entities. The loss of the certificate for the ingot threatens to lose the possibility of its sale ”,
– explained the representative of Alaric Gold.
Ru noted that in fact, a kind of shortage has formed in the market of coins made of precious metals.
“In March 2021, Alaric Gold sold all the gold and silver coins. According to the company’s representative, in the four years of the company’s operation in the Russian market, there has never been such urgent demand. “Gold coins “George the Victorious” (Russia), “Philharmonic” (Austria), “Britannia” (Great Britain) weighing one troy ounce (31.1 grams) are especially in demand.”
Are There Cheaper Options?
In an interview with the newspaper.Ru, a representative of Alaric Gold, said that gold, in his opinion, is quite expensive today, so silver coins are also a very interesting way to protect some of the funds from negative trends in the economy.
The fact is that now gold to silver in dollars is quoted from 1 to 79 – this is quite a big gap, and it will be reduced to 1-50.
“The reserves of money around the world will last 30 years. This metal is waiting for a very serious price increase, ” the expert says.
However, Alexander Osun from Freedom Finance pointed out some of the risks associated with physical gold. According to the expert,
the main advantage of the precious metal in the form of identical parts is the ease of purchase. However, when selling, the buyer may require independent verification of the details. Of course, it’s not free.
“In addition, the margin reflecting the artistic and numismatic value of the coins is relatively high. The value of the coins is about 10% – several tens of percent higher than the value of the precious metals from which they are made”” Alexander Osun added, explaining that the presence of artistic and numismatic value poses an additional risk for the investor.
In general, both experts agreed that gold coins represent a kind of protection against inflation.
“Gold and silver will grow in the long run. Any risks in the global economy will again lead to an increase in the quotations of precious metals. Dollars, euros and rubles can still be printed, while gold and silver reserves are limited ”,
Alexander Osin from Freedom Finance, however, noted that gold prices react with their dynamics not so much to inflation itself as to the factors that determine the dynamics of consumer and production prices in the economy.
“The actual average annual increase in gold prices in US dollars since 1968 is 6%. But during these 52 years, there were quite long periods when the price of gold grew more slowly than inflation, adjusting certain technical or fundamental factors with the help of price dynamics,” the expert says.
Thus, in fact, the main advice for those who decide to transfer their gold funds is not to transfer all available funds there. A much more competent solution would be to create a “basket” of investments to protect yourself from general economic risks.