Gold coins are popular again

Thursday, November 20, 2008

In poor economic times, gold coins have been considered a stronghold investment. Lately, they're so popular the U.S. Mint can't supply people fast enough. Dan Grech reports on the coin's increased demand.

A gold coin of first lady Abigail Adams, from a special series of first spouses printed by the U.S. Mint (Chip Somodevilla/Getty Images)

More on Investing, America's Financial Crisis

TEXT OF STORY

Scott Jagow: As the stock markets tank, everybody's on the hunt for safer investments. Gold coins have become pretty popular. Marketplace's Dan Grech has more on that.

Dan Grech: Last year, people bought 38 tons of gold coins in the third quarter alone. This year, that figure jumped to 61 tons.

Robert Mish is a coin dealer in Menlo Park, Calif.:

Robert Mish: The public's demand for gold coins has increased so much that not only myself but all of my colleagues have seen their inventories depleted.

The U.S. Mint cannot keep up. The Mint used to fill new orders for gold coins immediately. Now it can take up to seven weeks.

Mish: Gold has no debt against it, cannot go to zero, and throughout history has been the storehouse of value simply because the marketplace has given it that status.

Over the past month, the dollar has strengthened. That's pushed the price of an ounce of gold down $200 from its high last month. But dealers say that's only increased the demand for gold coins.

I'm Dan Grech for Marketplace.

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