It may be hard to believe but some people still do not think of gold as real money. Even after the skyrocketing price of this precious metal astounded market experts, some people have a hard time seeing gold coins as worthy investments. The best way to convince these people to take gold seriously is to explain a little about the famous Indian Head Gold Coin to them.

History of the Indian Head Gold Coin

The United States government began to strike these coins in the first years of the 20th century during the administration of Theodore Roosevelt. The US Mint issued them in two forms: the five-dollar coin and the two-and-a-half dollar coin. The former is known as the half-eagle and the latter as the quarter-eagle. They are US coins with recessed designs that are still in circulation.

These coins are valuable for more than just their weight in gold. They have not been struck since 1929 so they have a considerable collectible value as well, depending on their appearance and condition. Many shrewd investors include them as alternative investments in their portfolios among stocks, bonds and other financial instruments.

Why Indian Head Gold Coins Should Be Part of Your Investment Portfolio

Alternative investments are an important part of a truly diverse portfolio. In the case of Indian Head coins, they are more than just amusing side-projects. Gold has become a major element in many investment portfolios over the last few years for a variety of reasons.

• Gold is the best protection against the runaway inflation that is threatening the economy right now. You also do not have to worry about impending currency reform when you hold gold in your portfolio. It has excellent value no matter what kind of money the government prints.
• Gold is a truly international form of currency. You do not have to worry about whether your currency is respected in a particular location when you carry gold. It is a global form of cash.
• Gold will remain stable as an investment during any form of economic crisis. If you think that fuel is expensive now, just check how much fuel gold would have bought ten years ago compared to now. Fuel has not become more expensive for owners of gold. It has just become expensive for people who use paper money.
• Gold cannot inflate because there is a limited amount of this resource.
• Demand for this precious metal is considerably higher than the supply. This ensures a constant upward pressure on the value of gold.
• When you buy or sell gold that is used as an investment you are exempt from any sort of value-added tax