American Proof Gold Eagles: An Individual Retirement Account (IRA) Investment

December 26, 2009 · Posted in Collecting Proof Gold Eagles

Proof American Gold Eagle Coins are not only an investment, but also a work of art with lovely designs and great details in their display. The obverse design of this 22-karat coin is a tribute to Augustus Saint Gaudens, and is appreciated both coin collectors and artists.

The process used to create these lovely proof editions begins with burnished coin blanks being manually fed into presses that are fitted with special dies, creating the collector's editions. The coins are then struck multiple times, creating a detailed, softly frosted image that seemingly floats above the reflective field.

These lovely works of art and collector's items include a certificate of authenticity in a protective case while the coin itself is mounted in a blue velvet case with satin-lining to protect and showcase your investment. These Gold Proof Coins can be purchased through coin dealers, online auctions and even directly from the United States Mint.

These lovely coins do cost more than the American Eagle bullion coins since they are viewed as being actual works of art, however, because of their status as works of art they can not be recalled by the government for any reason or otherwise confiscated, the way rare coins can be. Gold is also considered a worthy investment in and of itself and is a great buffer against inflation. For example, in the 1970's when inflation was such a problem, the greatest protection against it was to be invested in gold. However, in a bull market such as the 1990's saw, gold bullion was actually an under-performer and having a portfolio heavy in gold resulted in lower returns.

It is also interesting to note that gold bullion can be purchased as part of an addition to your IRA portfolio. In doing so, the main thing to keep in mind with this is what your intention is with the investment, specifically, if you are planning on trading or holding the gold in the near future. Congress mandates and limits the amount of money that can be invested into your IRA every year. While gold is a good hedge against inflation, it also does not produce any residual income in the form of bonds, stocks, or trusts where distributions might be received. Therefore, investors looking to dedicate part of the asset portfolio to gold would be better off purchasing the collectible versions of American Gold Eagle Bullion coins and then securing them in a safety deposit box at your local bank or other financial institution that has been approved for storing gold bullion.