Gold Coins Gain as Gas Prices Surge: 33% in Three Months

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With summer just around the corner gas prices have continued to climb again steadily. Investors are seeking protection in the most predictable way possible - they are buying gold coins. As gas prices rise gold has had a history of rising along side the worlds largest commodity.

Investors grow concerned with the standard driving season right around the corner. Now more than ever consumers are beginning to feel the impact of an economy that is poised to slow down. As official reports continue to tell the American public that growth is certain in reality surging gas prices can be added to the long list of growing economic concerns.

"This has investors continuing to buy gold coins" says Marc Lubaszka, the President of World Financial. "Now more so than any other time in our nations history investors have to be more conservative with their investment choices. Owning gold coins can greatly reduce the global economic risks that plague our world today."

Gold over the last five years has given investors an above average return. It has been a good way to offset the devaluation of the US dollar, higher interest rates and housing market which is now sliding. Gold coins have continued to out pace even gold itself which makes investors wonder what traditional paper assets can be used as a vehicle that can be considered dependable.

"Part of the reason we are continuing to see record amounts of capital leaving the stock, bond, and cash account markets is because the fundamentals in each market have changed considerably. Investors know at this point it is unreasonable to expect a decent return in those markets which is why we are seeing a tremendous amount of money coming in to gold bullion and gold coins," says Lubaszka.

The US Mint has reported record buying of the gold American Eagle bullion coin and dealers nation wide have all agreed that the amount of buying for Canadian Maple Leafs is also up. With investors turning to gold coins during times of uncertainty its no wonder that the US Mint has begun increasing the number of gold bullion coins they are expected to produce in order to keep up with demand.

David Pursell, an analyst at Pickering Energy Partners in Houston, predicts $3-or-more gas at the pump this summer. "People will complain about it," he told Reuters, "but will probably keep driving." Part of the evidence to support such a claim can be seen by the fact that weekly motor-fuel demand reached a record this month. So as you continue to pay more at the pump it might not be a bad idea to buy gold coins if you haven't already.

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MARC LUBASZKA
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