Me personally I would only buy numismatics in a down market. That said if metals come down I will look to buy such coins as many non collectors who bought them will dump them.
"The only people who should be buying numismatics are those who appreciate the coins for their aesthetic value and take pleasure in owning them, not those hoping to preserve their wealth". This would describe my position. My hobby is not an investment tool.
Nice article and I have to agree with a lot of it. I don't however agree with this: "Gold still has a long bull market ahead of it." People were saying the same thing about the dot com bubble. Usually people who were CEOs of dot com companies or people with a lot of dot com shares. [SIZE=-1]Unless I'm mistaken, the author here works in the precious metal business.[/SIZE] Who knows? He may be right. Whether gold doubles in price or falls 90%, there will no doubt be plenty of articles from 'experts' explaining just why this was. So easy in hindsight! The next few years are going to be sooo interesting! Steve
You also have to consider that Greenspan made his famous "Irrational Exuberance" speech in December 1996, but the tech stocks continued to climb stronger than ever for another four years. Bull markets frequently last longer and move higher than anyone expects.
Yup, a lot of very smart people lost their butt predicting the dotcom bust. They were right, just too early. Especially when markets are acting irrationally, never try to time when they will come back to their senses. The old saying is "markets can remain irrational longer than you can remain liquid".
Let's try this then. I bailed out of stocks in early 2000. I think I'd be bailing out of precious metals pretty dang soon
Will the trend continue? I,am personally close to my bail out point, i just dont think it can keep up this almost impossible pace!!
Nope. But I used to spend a lot of time studying, researching, and using common sense. Couple that with experience and it's amazing what you can see coming down the road. 'Course the fact that I used to write a financial newsletter didn't hurt either Oh, did I mention that it was about that time that I started suggesting everybody buy gold.
Interestingly, 2000 was one of my best investing years ever. But didn't own the tech stocks. I think the precious metals might have one last parabolic rise before the end. The public is just waking up to them. Selling right is harder than buying right.
