Do I Enjoy Collecting Coins?

As you may know, I enjoy talking about finance on this blog. Recently, I have been researching the topic of gold and gold coins. Gold is one of those precious metals that is accepted in all five of the world markets. In the United States, for example, the US dollar was no longer set against the gold standard since the early 1970s. In practice, this means that investors can buy gold bullion like stocks in the free market. It is interesting to look at the prices of gold for the last few decades. For example, the price of gold used to be around $850 per ounce in the 1980s. In the 1980s, the price dropped to $250 per ounce. Today, gold trades at approximately $1000 per ounce, but we never know what direction the price will go. Since gold can be traded like stocks in the free market, the rule of investment that applies here is the following: buy when the price is low and sell when the price is high. It might be difficult to make money by trading gold, but it might be worth it in some cases. Of course, there are no investments that are a 100% sure bet. Some people are interested in obtaining gold coins as they look great and they can later possibly sell for more money.

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