As you’ll see from the following chart (which shows the historical pricing of a generic gold coin index), gold coins have been in a near 10 year bull market. This chart illustrates the infancy of this bull market and the potential room left to grow. We’re not even close to the All-Time High we hit back in 1990. So when an investor asks us “Should I Buy Gold?” the answer is a resounding yes!

If you had listened to our advice over the course of the past several years, you would have made a great deal of money. We have consistently advised clients to accumulate $20 Gold Pieces and we are still strongly urging investors that now is still a great time to invest in gold. Our research analysts believe the index still looks very strong technically and could increase a significant amount by the end of 2010. We believe this is a great opportunity for buy and hold investors, or even those looking for short-term trades.

The US Rare Coin market has been in the midst of a very strong bull rally. With Gold trading over $1000/oz , Gold coins, in the meantime, have shown an even better price appreciation. Some coins have moved up 80-100%! I’m here to tell you that this rally has just begun. Take a look at the chart below of the mint state gold coin index. You’ll see that these coins still have quite a way to go. So, yes, is my answer to “Should I Buy Gold?“.

We also recommend purchasing coins graded Mint State 63 or higher due to their natural scarcity and general strong liquidity. An additional advantage to buying $20 gold pieces is that the underlying gold value comprises a large percentage of the overall price, giving the investor a double-play profit opportunity — one on the scarcity premium attached to the coin, and the other on gold value. There are principally two design types for the $20 gold pieces — the Liberty (minted 1845-1907) and the St. Gaudens (minted 1907-1933).