Gold and platinum coins have been a traditional safe harbor in times of economic downturns and increased world tensions. We surely fit that profile now, and the price of the metals reflects it.
Unlike a thousand years ago, when precious metals were used almost exclusively for jewelry and ornamentation, today they serve industrial uses. And as demand for that increases so does the price. For instance, gold is one of the best conductors of electricity and is used extensively in electronics.
With more technology, we can expect a commensurate increase in demand for gold.
So, too, with platinum. No other product has been found to be as effective in removing pollutants from automotive exhaust systems. As more cars are produced globally, the demand for platinum for use in catalytic converters will rise.
There's little question that the best way to own precious metals is to physically take possession in the form of coins or bars. And, while there's no shortage of print ads and radio commercials touting gold coins, buying from a local dealer or directly from the U.S. Mint can help avoid potential headaches.
Later this month, one new gold coin could make many collectors emotional. It's modeled after the St. Gauden's $20 gold piece minted in 1907.
That year, the mint struck a small handful of gold coins with exceedingly deep impressions. Known as "ultra high relief," the coins were more like small sculptures than coins. One of the few known specimens of that 1907 version sold a few years ago for $2 million.
The restrike being issued this month will surely bring a premium over the gold content in the coin but should sell more affordably in the neighborhood of $1,000 apiece. Just how many will be struck hasn't yet been announced but check out www.usmint.gov or phone (800) 872-6468after Jan. 22 for all the information.
Peter Rexford writes for Creators Syndicate. Contact him at P.O. Box 50377, St. Louis, MO 63105.
What You Should Know About Comments on Sacbee.com
Sacbee.com is happy to provide a forum for reader interaction, discussion, feedback and reaction to our stories. However, we reserve the right to delete inappropriate comments or ban users who can't play nice. (See our full terms of service here.)
Here are some rules of the road:
• Keep your comments civil. Don't insult one another or the subjects of our articles. If you think a comment violates our guidelines click the "report abuse" button to notify the moderators. Responding to the comment will only encourage bad behavior.
• Don't use profanities, vulgarities or hate speech. This is a general interest news site. Sometimes, there are children present. Don't say anything in a way you wouldn't want your own child to hear.
• Do not attack other users; focus your comments on issues, not individuals.
• Stay on topic. Only post comments relevant to the article at hand. If you want to discuss an issue with a specific user, click on his profile name and send him a direct message.
• Do not copy and paste outside material into the comment box.
• Don't repeat the same comment over and over. We heard you the first time.
• Do not use the commenting system for advertising. That's spam and it isn't allowed.
• Don't use all capital letters. That's akin to yelling and not appreciated by the audience.
You should also know that The Sacramento Bee does not screen comments before they are posted. You are more likely to see inappropriate comments before our staff does, so we ask that you click the "report abuse" button to submit those comments for moderator review. You also may notify us via email at feedback@sacbee.com. Note the headline on which the comment is made and tell us the profile name of the user who made the comment. Remember, comment moderation is subjective. You may find some material objectionable that we won't and vice versa.
If you submit a comment, the user name of your account will appear along with it. Users cannot remove their own comments once they have submitted them, but you may ask our staff to retract one of your comments by sending an email to feedback@sacbee.com. Again, make sure you note the headline on which the comment is made and tell us your profile name.
About Comments
Reader comments on Sacbee.com are the opinions of the writer, not The Sacramento Bee. If you see an objectionable comment, click the "report abuse" button below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned. See more about comments here.