Time To Buy Gold Coins

By Peter Costa

There could not be a better time to buy gold coins. There has been a slight correction in the price of gold making it an ideal buying opportunity. This is an extremely temporary situation and before we know it gold will be breaking record highs. For years I have been advising individuals to get into gold and thus far my deductions have been correct. Recently I have received a lot of questions regarding gold and many have been asking if it is too late to get into the yellow metal. This is an excellent question and is something I am going to solely address in this article.

We all know the US economy faces major challenges in the coming times and these challenges are only going to escalate as the year unfolds. Hyper inflation seems to be right around the corner and our global neighbors are proving this to be correct. The US is a major player in the global community and anything that happens here will cause a domino effect elsewhere. If you pay close attention to the global community you will start to see a similar trend taking place that leads to nothing less than the rising price of gold coins making this time an unbelievable buying opportunity.

Recently there has been an influx of new buyers in the gold market place. You have been lead to believe that the largest purchasers are institutions and hedge fund managers but this is untrue. The largest purchasers of gold right now are countries. For the first time in decades countries are beginning to buy gold in an attempt to back up their currencies. This alone signifies that it is not too late to get into gold coins and that current prices are nothing short of a buying opportunity.

Last year alone India picked up 200 metric tons of gold from the IMF making it the largest gold purchase from a country in over 30 years. Since India made its purchase central banks around the world have been increasing their gold reserves. You would think with India making such a large purchase that they were the leaders for increasing their gold reserves in 2009 but they were actually second. China was the largest gold recipient in 2009 increasing their reserves by 454 metric tons. Following China and India was Russia increasing their reserves 111.8 metric tons. Additional countries to take note of are listed below:

1. 454 Metric Tons (China)
2. 200 Metric Tons (India)
3. 111.8 Metric Tons (Russia)
4. 16.6 Metric Tons (Phillipines)
5. 10 Metric Tons (Sri Lanka)
6. 5 Metric Tons (Mexico)
7. 2.6 Metric Tons (Belarus)

The gold rush has only begun and China is said to be leading the way. Ji Xiaonan, who chairs the supervisory board for big state-owned companies under the State Council’s state assets commission, was quoted saying “We suggested that China’s gold reserves should reach 6,000 tons in the next 3-5 years and perhaps 10,000 tons in 8-10 years”. In response to the statement by Ji Xiaonan Ronald Fricke president of Regal Assets said “If China increases their gold reserves to 6000 metric tons in the next 3 years this will push gold prices to over $2100 an ounce.” China is already on track for this goal and in 1 year has added close to 500 metric tons of gold to their already plentiful reserve.

As more and more countries pick up gold there will soon be a shortage. In over 5000 years we have only been able to amass about 160,000 metric tons which is enough to fill two olympic sized swimming pools. Keep in mind that we never throw gold away it is either kept or melted down and turned into something else. It is very possible that the gold coins you own may very well have been a piece of jewelry from ancient Egypt or even the Mayans. If you have ever played a game of musical chairs you know the reality of short supply and that somebody is always left out of a chair. A similar game of musical chairs is happening right now and while countries are quietly trying to pick up gold soon enough someone is going to come short and the true ascend for gold will begin. If you are sitting in the green back in hopes of a dollar recovery I am afraid you will be very disappointed with the results. It is time to quietly get out of the green back and into gold coins before you lose the option to do so.

Related posts:

1. The IMF Is Driving Up Gold Prices
2. The Truth Behind The Dollar And The Value of Gold
3. Where Gold Prices Will Be Before Year End