December 4th 2009

With gold prices reaching a new high again this week and further rises anticipated, investors are scrambling to buy gold coins, bullion, bars or whatever gold they can get their hands on.

Over a year ago in July 2008 the Daily Telegraph reported:

“Tens of thousands of investors have rushed to buy gold from bullion dealers over the past year, during which the gold price has broken through the $1,000 barrier on occasions.”

Danske Research Team reported yesterday

“Gold hit $1,226”

So the investors who were rushing to buy gold 18 months ago have seen their investments rise by over 22%. Not bad considering that typical investment accounts with banks are paying around 1.5%.

Another recent report from the Financial Times

In Ghana – “Investors’ scurry for safety has pushed the gold price to all-time highs above $1,100 an ounce, sending mining companies, small-scale artisans and illicit gold-diggers scrambling for drills and picks.”

On a sidenote, if you are in need of cash and you have any gold to sell this could be a good time to cash in.

Of course, the weakness of the dollar is also contributing to the soaring gold prices, but it doesn’t look as if the upward trend is going to stop anytime soon.

Gold Prices Last 10 Years

The market price quoted today on cooksongold.com for 1kg of gold is £23,521.

At the moment on eBay a 250g gold bullion bar sold for £6,100 and 1oz krugerrands are selling for around £740-£820 depending on age and condition.

Another site – bullionbypost.co.uk is selling gold bullion at slightly cheaper prices than you can get it for on eBay. A 1 ounce bullion bar costs £762; 100g is £2,421 and if you want something really weighty to put in a Christmas stocking a 1 kilogram bar is £23,948.

There are times when a run-of-the-mill gift just won’t do. This could be a birth, a wedding, a special birthday or an anniversary. Perhaps you would like to give a child something special this Christmas. For the same price as a computer game system that will be obsolete in a year or two, you could give a gold investment that will grow in value and could have a positive effect on their future lives.

The interest in gold coin collecting, particularly rare gold coins and British coins is growing. Starting a gold coin collection for yourself or someone you love is a fantastic investment for a future where other traditional types of investment are fraught with uncertainties as to how they might perform.

British gold sovereign coins are recognised the world over and are one of the most desirable and collectable gold coins that has ever been produced. There are also half sovereigns and even now a miniature quarter sovereign for those that find the price of full sovereign coins outside of their budget.

When you are looking at buying gold sovereigns, old coins do command much higher prices generally. However, for a gift, a new or recent gold sovereign coin in a capsule or presentation case is a highly desirable alternative.

Gold Sovereign in Box

Full sovereign coins weigh just under 8g of 22 carat gold, but although the scrap price of gold is rising almost on a daily basis at present, the value of a gold coin will always be far above its scrap value. The most collectable type of gold sovereigns is the ‘proof’ which can command higher prices as a result.

Giving a gold sovereign as a gift can result in an interest in rare gold coins which can be an engrossing and extremely profitable hobby.