GOLD Goes Boom!

opening value today:
11/04/2008
08:36
743.90
744.90
+21.90
+3.03%


WOW!

 

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I've been noticing lately that when the Asian markets are open, gold usually rises. When the US markets are open, gold usually falls. Maybe it's a coincidence or maybe it's a difference in perception about value in different parts of the world.

 

This was the opening value for the US, now up $17.80.

 

My "spot checking" (if you'll pardon the expression) of "real" prices at my club's coin show (Nov 1-2 2008). All of these were raw (unslabbed) and without any specific numismatic value above that of the bullion.

1/10 oz AGEs: $90 to $100

1/10 oz other bullion: $85 to $95

1/4 oz AGEs: $225 to $250

1/2 oz AGEs: $460 to $500

1 oz AGEs: $950 to $1000

Double Eagles: $1100 to $1200

No one I spoke to about pricing was willing to come down below around $900 an ounce. To a person they argued that the spot price was not reflective of reality.

 

Not reflective of reality or not reflective of what they paid for them?

I hate when this happens... dealers who paid too much for something refusing to take the loss on an item that they overpaid for in order to sell it. When these dealers owned gold at $350/oz, they had no problem charging $600 because that was the spot price, now they don't want to sell it at spot because that means that they will take a loss on the coins.

This is their prerogative, but it is a dangerous attitude to take. So now they hold on to the inventory, and don't have the cash to spend on other things that they could sell while waiting for the spot price to recover. Businesses makes these kind of decisions every day. Some of them will survive, others won't. In many cases it is wise to cut your losses and move on. Carrying inventory is a cost of doing business and some can afford to do it better than others.

To some of these dealers, the decision to carry this inventory will determine whether or not they stay in business. Personally, I understand the regret of overpaying for something, but mistakes are something that people make every day and compounding the mistake of overpaying for gold by holding it until it is worth what it cost may prove to be a bigger loss than just selling it and moving on to items that will actually sell at a profit.

 

mike:
I agree, the dealers are certainly quick enough to raise their prices when the value goes up, but refuse to take a loss.

But---
They'll let us take a loss, and buy at current market.

Generous of them, ain't it.

 

Wow:
11/04/2008
11:40 AM!
757.80
758.80
+35.80
+4.96%

 

Mike, my sentiment exactly.

Frank, call me when gold reaches $850oz. Personally, I could care less what the price of gold is. I would prefer for it to stay below $800 or less, but if it goes higher then so be it. All the gold coins that I am interested in are priced as if gold was $850oz or higher anyway for the very reason that Mike stated above.

 

I was surprised to see silver top $10.

 

your wish is my command:
Gold:
11/04/2008
13:32
755.40
756.40
+33.40
+4.63%
737.50
763.70

SILVER
11/04/2008
13:32
10.08
10.11
+0.29
+2.96%

 

Supposing you wanted to invest in platinum or palladium, which are both still hovering at 5-year lows, give or take. What are your choices, presently, in terms of coins?

 

Boom continues:
11/04/2008
GOLD:
15:48
765.00
766.00
+43.00
+5.96%
737.50
766.60

SILVER
11/04/2008
15:47
10.23
10.26
+0.44
+4.49%
10.05
10.58

 

Personally:
Platinum.

Very low amount available, many industrial uses.

palladium still looks like a typo to me.

 

I traded my silver for gold today!

I sold that ASE set I offered here a couple of weeks ago for spot + $3/coin and $35 for the 96. Took the $300 and bought a 1/4 oz. gold buffalo!!!

 

Mike ya done good.
Gold closed up $39.10

 

Thanks, I hope so Frank. I think that the 1/4 oz. Buffalo is a sleeper. It's nearly identical in size to a nickel, and they won't mint any more this year due to planchet supply issues. The relatively high price of the coin to actual spot has IMHO kept the mintage pretty low, and I think that as more people are exposed to this particular coin, the demand is going to go up. But then again... what do I know?

 

That makes a lot of sense. I think you are correct. :thumb:

Was it the proof or uncirculated? The proofs always seem to have a higher mintage.

 

I went for the UNC. The classic look...

 

That is one strange duck, gotsta say...

 

Gold goes BUST!!!

gold is back down today. Was just the elsection buzz running it up, and was an excellent time to trade back and forth.

12:16 -20.40 -2.68%