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Tuesday, August 26, 2008
Better than bullion!
 
Collectible gold outperforms bullion in 2008

Better than bullion!
Historic Mint-State U.S. $20 Liberty gold coins: half the volatility, twice the growth last year!

Daily gold bullion prices reflect the daily global economic environment - which has been very spastic lately. A secular bear market in both equities and the dollar have helped to propel the gold bull market since 2001, driving prices from $265 to $1,000/oz.

Gold bullion prices are now down nearly 20%, from their 2008 peak of $1,002/oz., as the dollar has rallied and oil prices have dropped sharply. Yet most analysts remain bullish on gold long-term.

The charts illustrate that collectible U.S. gold coins are beneficiaries of rising gold bullion prices, yet they remain more insulated from volatile corrections.

For example, from Aug 2007 to Aug 2008 gold bullion prices have risen 20% from $650 to $810/oz. (8-12-08), but prices are down nearly 20% from the March 2008 high of $1,002/oz. In contrast Mint-State 63 U.S. $20 Liberty gold coins have risen 50%* over the last year, but are only down 10% from the 2008 high. Rare U.S. gold coins offer more growth with less volatility.

All gold coins NOT created equal!

All forms of gold are NOT created equal, nor do they perform equally. Mint-State Liberty gold coins are the perfect form of gold to own for long-term capital appreciation, affordability (with prices starting under $1,300) and 100% privacy, unlike bullion or ETFs.

Mint-State (Investment-grade) U.S. gold coins have tremendous collector appeal which often creates more demand than the available supply will accommodate. This law of supply and demand can cause coin prices to rise -- even when gold bullion prices drop.

The bottom line: A new gold rush is alive and well today, despite major price corrections. In any healthy bull market prices will stepladder up, sideways, down ... up, sideways, down. Gold bullion coins and Mint-State $20 Libertys both offer great value today!

 
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All of the provided information is believed to be accurate, however errors are possible. The opinions in the Commentary section do not necessarily reflect the opinions of GoldIRAS.com. Past performance of any investment is no guarantee of future performance. All investments have risk.
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