A 1 oz. gold coin and gold in general is sometimes called the “anti-dollar” because it is a perfect hedge against a falling dollar. A 1 oz. gold coin like other gold in the market has been rising in value since 2001.

There are a number of complex internal and external issues that have created this rise affecting gold like the 1 oz. gold coin. Here are reasons this trend is expected to continue until 2016 or beyond and why experts want Americans to own it.

Rising World Inflation

“Inflation is the one form of taxation that can be imposed without legislation” as stated by economist Milton Friedman. The Federal Reserve and US Government’s Consumer Price Index reported that the inflation rate in the United States was 1.20 percent in July of 2010 but other indexes confirm real world inflation is double that amount. Gold coins like the 1 oz. gold coin have an excellent track record against inflation.

Rising Political Uncertainty

Since 911 the threat of future terrorist attacks is now part of our American way of life.  Countries in the Middle East are volatile and the threat of a nuclear attack is a reality which could send gold and oil prices soaring. In a crisis situation, owning portable, liquid and generally accepted wealth like a 1 oz. gold coin is highly sought after. A 1 oz. gold coin offers a safe haven in global uncertainties.

Falling US Dollar

A 1 oz. gold coin and gold in general is sometimes called the “anti-dollar” because it is a perfect hedge against a falling dollar. The dollar has fallen 35% since 2001 and 95% since the 1950′s. The United States now borrows $2.5 billion dollars a day and rising.

Devaluing the dollar is one way the market corrects rising U.S. deficits. The global confidence is fading fast in America’s ability to manage our trillions of dollars of debt and according to gold experts it makes the 1 oz. gold coin a smart hedge against the falling U.S. dollar.

A long term or secular bull market began in 2001 in gold, silver and commodities. This drove oil prices up from $25 per barrel to over $70 and pushed gold up 250%.  According to industry experts a typical secular bull market runs 15 to 23 years and is expected to continue to 2016 and beyond.

Electronic Traded Funds (ETFs) Popularity

Gold ETFs are a security backed up by allocated gold held in a vault for investors. During 2006 and 2007 gold bullion placed in ETFs nearly doubled from six to 11 billion dollars (11 million to 18 million ounces). ETFs are also quite tax-efficient because of the way they are created and redeemed. They allow an investor to pay most of his capital gains on final sale of the ETF.

Internet Trading Rises

The Internet has provided educational and entrepreneurial opportunities making it easier to buy and sell gold like the 1 oz goldcoin. Global Internet commerce from 2003 to 2010 has increased from five to 25%.

Amateur Coin Collecting Increasing

Since 2000 with the U.S. Mint’s release of the Statehood Quarter program there have been over 140 million new coin collectors. In 2007 the Mint began issuing new Presidential $1 coins in the hopes of generating new interest in amateur coin collecting. While these coins like the 1 oz. gold coin may not be rare there is still a positive effect on the coin market when there is national promotion by the U.S. Mint.

Owning and investing in gold like the 1 oz.gold coin is considered by many Americans to be the “terror free” investment hedge in today’s dangerous world.

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