Buying Gold Bullion More Likely than Trillion Dollar Coin

Have you heard the one about that fiscal cliff America was going to dive off of? Well, no matter who you personally caused the problem, the minting of a trillion dollar coin (definitely a step up from gold coin and silver coin) was one proposed solution. The idea kicked off in 2010 courtesy of a Georgia lawyer with the screenname, “Beaowulf” (Wired.com). It was the simplicity of the plan that made it so brilliant and when a threat of a another debt ceiling appeared in 2012 a White House petition was started in order to convert concept to reality. (HuffingtonPost.com). Despite national support surrounding the idea, buying gold bullion is a more likely proposal than the minting of a trillion dollar coin.

There is a very bizarre law on the books that states that the government can mint a platinum coin worth any dollar amount they choose. That money would then be deposited into the Federal Reserve, paying off the debt and making it completely unnecessary to make arrangements in order to deal with the fiscal cliff. At the current platinum price of $1686 (just above the gold price of $1676 for 1 oz gold on 1/30/13) to mint a real coin that was equal in its’ weight to its platinum value would require approximately 37,069,988 pounds of the precious metal. The Washington solution would to be to mint a coin of a more reasonable size and simple label it with its’ worth.

Either way, it is less than likely that this coin will be minted, but the fact remains that the US Mint still forges gold coins and gold bars. Merit Gold is only one source where consumers can begin buying gold bullion that is backed by the muscle of the US Government. Individuals who plan accordingly will be able to make buying gold bullion a reality and have the resources to hedge their losses against any unusual strategy.

Who Are The Best Gold Dealers?

When buying gold, many don't know where to turn. Unfortunately, there a lot of shady characters in the gold industry looking to make a fortune off of unsuspecting gold investors, so it pays to be careful. The best way to find the best gold dealers is often word-of-mouth. In that regard, finding the best resources is a lot like finding the best in any industry. If you want to get your house painted, you look around the neighborhood for an attractive recently painted home and asked the residents who they used. This basic common sense approach applies to gold too. So to find gold dealers you know you can trust, ask your friends.

Good gold dealers will be realistic and prepare you for the reality that gold is a terrific long-term investment, but you have to be willing to ride out the short term fluctuations. The near-term ups and downs are perfectly normal and to be expected. Market analysts Rohit Savant of The Gold Report says he believes that the fundamentals of gold are positive, but he predicts that in 2013, gold could go down and the market may be a bit flat. http://goldnews.bullionvault.com/

There are many reasons gold prices go up and those reasons have already been taken into consideration. For example, the lousy economy naturally sends gold prices up, but in 2013 this is nothing new. It's been the case for so long that it's already largely accounted for in the current price of gold. So many of the variables that peoples see as influential on gold are in fact influential but those influences are not new and they've already been accounted for. In other words, their positive effect has already impacted gold’s current price.

So although gold isn't going to boom, it will probably not go down a lot either. The only real danger to the gold market would be if investors become indifferent and their interest wanes. But we don't see that happening now or in the near future. So the big picture is that the most likely scenario is that gold will go up - but not by much, which in the scheme of things isn't much of a risk at all.

The reasons gold is a strong long-term investment will always hold true and definitely still hold true today; but investors who are very frustrated by the short-term fluctuations of gold and silver or other precious metals should perhaps look for other kinds of investments because that is the nature of this beast.