Gold and gold eagle coins should be treated like similar investments. So why go for gold, when you can put your money in the stock market, for example, or in some other physical ventures that can potentially earn as much? Many gold traders ask themselves this same question prior to becoming addicted to gold. And the answer to this is multi-faceted, ranging from the economic to the personal and everything in between.

As we probably already know, the price of gold is one of the very few things that have remained stable, even rising, in the face of the declining economy. With indications of recession striking the nation a year ago, the value dropped slightly, just to stabilize and increase once more, and now with the prospect of achieving new heights.

This doesn't shock gold collectors and investors who are aware that gold has held its value for nearly two hundred years. The purchasing power of gold has remained more stable than most world currencies regardless of economic conditions. For example, pure gold has the same cost today as it did centuries ago. Meanwhile, paper notes have seen fluctuations and price drops, due to manipulations and withdrawal of gold reserve which backed them.

With the continuing threat of inflation and recession, and all of the problems in the global economy, economists predict that our economy will not improve for some time. However, despite this expected drop, the purchasing power of 100% gold is also expected to remain quite stable and even go up, as it's insulated from economic movements and market forces.

Now armed with a good reason why you should put your investments in gold, it is also important to ponder which type of gold you want to buy. Gold can be bought in four different forms, namely, stocks, exchanged traded funds, futures and bullions. Of all these forms, however, most people with knowledge in the subject advise to invest in bullion because it is the most stable as far as value is concerned. The price of gold bullions stays consistent and there is less risk than with gold stocks or futures. This stability has been proven throughout history.

Gold coins pack value into a small package that can be easily bought, sold, traded and kept securely. In addition to being valuable, gold coins can also be collector's items because they are pretty and interesting. For instance, for many American Gold Coin buyers, especially people that have them as part of their collection, they will consider the design on the face of coin, as well as the actual gold content when buying. These provide sound rationale for anyone to consider the purchase of gold eagle coins as an investment or a hobby.

Bullion typically remains stable, no matter whether it is in the form of gold bars or the American Eagle Gold Coin, and both forms are valued as actual gold, not its representations. Both have the assurance of retaining their value even when there is a stock market downturn or an economic recession and both have an instant salability at the value of gold at the time of the sale.

Plus, gold coins and gold bars can be easily transported and stored making them the ideal medium to invest value in.

This then, for the collector as well as the invester or even just the hobbyist, is the answer to the question, why buy the American Gold Eagle.