UK public go for gold in their search of firm currency

To meet an unprecedented demand from savers looking for a haven for their cash, it has been announced that the Royal Mint has been forced to double their production of gold coins. It appears that the output for gold coins in the second quarter of 2009 in terms of weight was 16,910 ounces, up from 8,030 in the same period last year.

Overall output for the first half of 2009 overall was more than 45,000 ounces, up an amazing 86% on the same period for 2008.

As has been the case throughout history, collectors are snapping up the newly minted gold coinage, because it is one of the easiest and most straightforward ways to place their money directly in gold.

Gold has been traditionally regarded as a safe haven in times of financial turbulence. Since the outset of this recent crisis, and even for several years preceding it, gold has consistently risen in value. Currently it is valued at around $950 an ounce and has even made the $1,000 an ounce mark a few times over the last few years. However analysts predict that as long as the dollar continues to devalue and there is general uncertainty in the global financial markets, the price of gold will continue to rise and could eventually reach as high as $2.000 an ounce.

During the past decade, gold trading patterns have shown that prices will rise for a term of around six to nine months, and then stabilise or even fall back a little before rising again.

Many financial analysts state that gold is the ultimate currency, performing best when economies are at extremes, whether inflationary or deflationary.
One fact that is generally accepted is that if the quantitative easing program in both sides of the Atlantic does go wrong then the value of money relative to real assets will dwindle, and double figure inflation is a very real possibility.

Even if the recovery does sustain itself people holding should be still be in a stronger position than those who invested in currency.

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Tags: Coins, Currencies, Currency, Gold, Royal Mint