Why Gold Coins Aren’t Moving

You can always empty that jar of change on the counter and add it up. Nickels, dimes and other minted coins have a value that isn’t going to go away – it’s stamped on the metal. Gold coins, however, are in a constant state of flux. What they’re worth today and what they’re worth tomorrow could be two wildly different numbers. This is one of the reasons why gold coins aren’t moving as well as other forms of gold.

The Price of Gold

Price of Gold

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Gold is weighed by the ounce; one ounce of gold is worth x amount of cash dollars. That worth is determined by a number of factors. How much gold is in the world? Which countries need gold because they’re running low? How long does it take to mine the gold? All of this is used to determine the price of gold, and it’s a price that changes every single day depending on the rest of the world market.

What’s Wrong with Gold Coins?

Gold Coins

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Gold is commonly turned into coins because coins are easy to trade. Coins are small, transportable, and instantly recognizable. However, they’re also a bit of a gamble. The price of gold coins fluctuates often. Currently, United States American Eagle gold coins are at their lowest value since 2007. Experts predict that the price of gold coins will continue to fall in the last quarter of the year, which means it may not climb again until the New Year.

Falling prices on gold coins reflect the larger economic problems being felt worldwide. Even the fear of a bad economy can affect the price of gold coins and make people less likely to trade. When fewer people are trading in gold coins, fewer investors buy them, and the price of the coins begins to lower. Traditionally, American Eagle gold coins are at their highest prices at the beginning of the year. At the end of the year, many buyers consider them to be a bad investment because values become so low.

Politics and elections greatly affect gold coin prices. When people feel political uncertainty, they do less buying and selling, and the gold market suffers overall. It’s an election year in the United States, and this is one of the reasons why gold coins aren’t moving.

Gold Bullion

Gold Bullion

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Gold bullion sounds like a colorful cube you might throw in a stew pot for dinner, but it’s actually one of the world’s most popular commodities. Gold bullion is gold that has not been melted and stamped into coins. It’s common to find gold bullion in bar form, because bars as so easy to store and transport. Gold bars always have a value, and you need only weigh it to find out what that value is.

The value of gold bullion is determined by weight. Bigger bars don’t always mean more money; the weight of gold varies depending upon purity. Hold two similar pieces of jewelry in your hand and you can feel the difference; 14k gold weighs less than pure 24k gold.

Gold bars aren’t necessarily minted by a specific country, like gold coins, and they’re less affected by politics and headlines. Gold bullion has value anywhere and everywhere in the world, and can always be traded. The worth of gold bullion is determined by the worth of gold itself, while coins are affected strongly by financial and political turmoil in their country of origin.

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