buying gold?

[Fatality]

was it like 10-12 years ago gold was something like 300+ per oz, and now its what like 1200 or some such?

has the high point been reached, or will gold contimue to rise? is it worth buying now or are all thos who bought it at 300 an oz selling it off now for the current value and making a killing?

 

[The Rabbi]

Hard to say.
Look at the overhang of dollars in the money supply. The only way the price of gold will go down is for the Fed to start tightening and reduce this supply. The Fed has a terrible record of doing that, preferring to leave credit too easy until the bubble bursts. This was the entire reason for the current economic crisis. It had nothing to do with Bush, except that he appointed Bernanke.
Of course Obama will make it worse. He will pressure Bernanke not to tighten until after the midterm elections. So I would say gold is a good bet through 2010.

 

[Oddball]

My coin dealer recommends trading in your collectibe coins (St. Gaudens $20.00 etcetera) for bullion.

 

[Toro]

Gold was $300 in 2002.

I am up to my eyeballs in gold and think it could hit $1300 to $1500 some time by next March. I could change my mind tomorrow though, and sell every ounce I own.

It would not surprise me if gold eventually hits $5000. I am not making that prediction, and I think the chances are small, but if it happened, I would not be surprised.

 

[The Rabbi]

My coin dealer recommends trading in your collectibe coins (St. Gaudens $20.00 etcetera) for bullion.

Why?

 

[Midnight Marauder]

If you have money or assets that you don't mind being tied up for at least five years, Gold is an option.

 

[Oddball]

My coin dealer recommends trading in your collectibe coins (St. Gaudens $20.00 etcetera) for bullion.

Why?

He believes the appreciation in the bullion will outstrip the premium for the collectible coin.

 

[The Rabbi]

My coin dealer recommends trading in your collectibe coins (St. Gaudens $20.00 etcetera) for bullion.

Why?

He believes the appreciation in the bullion will outstrip the premium for the collectible coin.

Maybe. But is there that much premium i the collectible? The melt value in the coin itself will continue to rise with bullion.

 

[Oddball]

Right...But if you trade in a lot of Saints for bullion and it goes up to $2000 an ounce, you'll have a lot more money in the end.

 

[Toro]

Coins can trade at 10%-15% above the spot price.

The bid/ask spread, the costs of storage, and illiquidity all make owing the physical less desirable than holding exchange traded gold IMHO.

 

[Oddball]

Doesn't cost anyone anything to keep a box of Krugerrands in your safe.

 

[The Rabbi]

Right...But if you trade in a lot of Saints for bullion and it goes up to $2000 an ounce, you'll have a lot more money in the end.

Well, if the previous post is right and the collectible trades 15% above spot then at what point do you break even? There is a transaction cost on switching out, I assume.

 

[Toro]

Doesn't cost anyone anything to keep a box of Krugerrands in your safe.

You don't insure it?

 

[Oddball]

Right...But if you trade in a lot of Saints for bullion and it goes up to $2000 an ounce, you'll have a lot more money in the end.

Well, if the previous post is right and the collectible trades 15% above spot then at what point do you break even? There is a transaction cost on switching out, I assume.

Depends upon the dealer.

The purchase and liquidation premiums are all over the place, depending upon individual shop policy.

 

[geauxtohell]

Why buy anything when it is at a high?

 

[Oddball]

The way the Fed is going to have to print up greenbacks to keep up with the spend-a-thon going on in the District of Criminals, let alone the built in upcoming explsoin of unfunded entitlement spending, commodities can only go up.

 

[Toro]

Why buy anything when it is at a high?

Because its going higher.

 

[Fatality]

My coin dealer recommends trading in your collectibe coins (St. Gaudens $20.00 etcetera) for bullion.

what about silver certificates, where can those be traded for actual silver?

 

[eagleseven]

Why buy anything when it is at a high?

Because, thanks to federal policies, this may be the new low. Unless the Democrats cut spending today, gold will continue to skyrocket, and the dollar will continue to plummet.

 

[Polk]

Why buy anything when it is at a high?

I'll go one step further. If you reason for purchasing gold is to hedge against devaluation of the dollar, why not purchase other commodities (oil, for example) or a currency which you expect to have less devaluation.