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September 9, 2009 - As COMEX gold rubs elbows with the $1000 mark during Wednesday afternoon trading, the question heard around the world is, "Is bullion a good investment?" Mainstream avenues of investing have frustrated many as of late, and commodities like gold bullion are poised to come up sharply if the US debt increases.

Historically, US investors shift funds into gold bullion when the economy is in a shrinking state, as it is now. Gold is projected to rise in value due to it's very limited availability in comparison with paper currency, which many believe will keep being produced in high amounts inside the United States. Add to this the fact that China is contemplating dropping their US bond holdings for a handbasket of currencies, and almost everything points to gold. So, the question, "Is bullion a good investment?" seems odd.

Why does the uncertainty about bullion exist? Gold is at $997, up 24% in the past 365 days, and many expert projections place gold at over $1300 in the next few months. Gold bullion was historically recalled by the US government, and from 1933 until 1973 hoarding gold was a crime punishable by prison time inside the United States. Today, traders use gold bullion as a short-term investment because of the risk of another gold confiscation. It may never happen, but investors cautious about the US government aren't taking any chances. They believe that gold bullion will be taken by the government to back up the US Dollar's value, as it was by President Roosevelt in 1933. The trend is for these investors to shy away from bullion, opting instead to invest in PCGS certified rare coins. Investors with questions about gold can track gold bullion and certified rare coins online at PCGS.com and goldprice.net.

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Arthur McGuire

Senior Staff Writer - Gold-Investment.info