Investors Continue Flocking To Gold Eagles As Economic Recovery Fears Heighten

June 7, 2011 – The gold spot price has taken a small step back as a result of investors awaiting further direction from the Federal Reserve’s Chairman, Ben Bernanke. Today he is scheduled to make a speech at 1945 GMT in Atlanta regarding the United States’ economic outlook and current stimulus program known as quantitative easing two, or QE2. Investors are fully aware that if the central bank continues pumping more money, this could result in gold positive and dollar negative, a trend that has become too common in the past decade.

As far as gold Eagles are concerned, the United States Mint has reported an impressive 62,000 ounces of gold Eagle coins sold within the first week of May. American Eagle gold coins already surpassed 57% of April’s sales within the first 10 days of May, and the US Mint projects that sales could reach over 240,000 ounces according to current trends. The last time these coins were in such high demand was in December 2009, with 231,500 ounces sold and in March 1999, with 269,000 ounces sold.

Certified gold coins like the $20 Saint Gaudens Double Eagles have also shown increased demand, with several of the most popular investment-grade varieties increasing in value more than 20% in the last 365 days. This is all attributed to a higher number of investors flocking to certified gold as their ultimate hedge from the uncertainty that lies ahead during this “economic recovery.” With many projections saying that gold could increase another 20% by the end of 2011, could this be a good time to pick up a few gold Eagles?

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Joshua Harris

Senior Staff Writer - Gold-Eagle.org