Gold over $700.00

With the platinum proofs making up some of the lowest minted US coinage in this century, what do traditional collectors think of this series that is scheduled to end or possibly major overhaul in 2009? I would love to see a series done in Palladium which is 1/4 the cost of platinum but is similar is many ways. Both take over 9 months from ore to ingot and until 1843 they were thought to be the same mineral. Palladium is the sleeper metal if you ask me and I predict it will double in the next 3-5 years.

My thoughts, if you will, on precious metals. Please feel free to correct any errors as I am not sure how many bourbons I had before writing this. First off, anyone that still thinks in terms of silver-gold 1/16 probably still uses an 8-track in their car. I don't mean that in terms of the average investor but more for the smucks that BS in the metals market.

Silver is unique and is considered by most as one of the worst investments out there. That doesn't mean that a ton of people didn't retire on silver but the fact remains that silver is terribly unpredictable. 4 years ago silver was less than $5 and now it seems to set a new medium at around $12. Why? Well the Mint for one thing. The Mint/US Gov made a tremendous purchase earlier in this century of so much silver I don't recall but it was at somewhere around 23 or so cents an ounce. (That was not even close to market, hmmm) A year or 2 ago the Mint ran out, so I understand, and instead of buying mega years like in the past (as the silver hypesters proclaimed) the Mint chose to buy as needed based on supply, demand and market price. As a result silver will NEVER go below $10 ever again. The US Mint as I understand uses around 60 million troy ounces of silver each year.

Gold. Such a story. The rise in gold prices reflects several countries, primarily Asian/Pac Rim (S Korea & Russia as the top 2) adding gold to their treasuries to back their currency. Have you noticed that the US Dollar is taking a nose dive? This is due 80% to the global trade/economy but 20% due to the actual value that the US has at Ft Knox that backs our currency. Oh, on a side note, our current laws do allow for the confiscation of all bullion gold coins should the US need to back our currency during an economic emergency. This does not apply to proof bullion or to the UNC W bullion as they meet the govs numismatic tests for ownership. Ok, that's kind of good, what about the straight bullion? No problem, if it is graded and encapsulated by a legit grading company then it is considered semi-numismatic and can be argued favorably for private ownership. Good reason to slab with PCGS/NGC. My take is a little more conservative since I've seen the hype one time too many and mu view is that gold will move toward $800 in the next 6 months and that is it. I don't expect to see gold over $1000 for the next 3 years. Maybe then we will see a seesaw up to 1200/1400 an oz.

Platinum is the cog of industrialism in the 21st century. As I understand 2 to 3 out of 5 items commonly used in our environment require platinum for its manufacture. While platinum extraction techniques continue to improve it still takes around 9 months to extract commercial platinum from raw ore. In a sense that is more of a logistical problem while the real issue is that known platinum reserves do not come close to supplying the global economies requirement for this industrial marvel. Gloom and doom!

Underdog! Remember that cartoon? That’s where palladium steps in. With most of the critical industrial traits as platinum and priced quite nicely,($1200+/oz) versus ($330+/oz) this metal has risen almost 100% in the last 3 years. The US and Russia are the top two producers but in the US there is just 1 US mining company (that I am aware of) that produces commercial palladium for resale and that is of course the Stillwater Mining company which has a great website with several options in which to purchase palladium. Obviously I think it is a good but at the same time I also recommend that you do your own research and that you double check anything and everything I have said as this is a marketplace that I am sure no one can always accuratley predict its path.

 

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new high again for gold

new high for gold is $726.00 per ounce. future gold reached $738.00. see gold hit near $800.00 soon.

 

Interesting analysis Griv...

I guess a big question would be whether or not Palladium might be substituted for Platinum in some of the products/processes you mentioned.

Wally

 

http://www.reuters.com/article/envi...0070914?feedType=RSS&feedName=environmentNews

Shoud be interesting to see the long term affects (if any) of this on Platinum.?.

 

The answer is yes and in fact it is being used to substitute for platinum especially in the auto industry. While the US and Japan use by far the most, over the last 2 years China has stepped up use in accordance with their rise in manufacturing which IMO is the reason behind the rise in palladium to its current level. Jewelry is also another avenue that palladium is being used but I personally think palladium is duller than platinum.

 

$739.40 is the new high

gold hit $739.40 high as expected. silver follows. see continue rising on metals. as big stock brokers ask investors to buy more metals.

 

I do no get it elaine, should I be excited about gold at $733?, hell no!!! For the first time since 1976 the Canadian dollar equals the US dollar and today 1.4 dollar equal 1 euro. Now that is BAD. The economy is diving really hard and our purchasing power diminishes as well.

 

pellegrino:
Agreed, however, it is better for our exports.
But, bad for tourists going to Europe.
Good for incoming tourists.

 

dollar fall

it is better to have something like gold and silver. rather than nothing. most thing will be moving upward due to devaluation of dollar.

 

We're all collecting "DOOMSDAY' money, we just didn't know it!!

 

Are you stockpiling food and weapons also?

 

Oh no, I knew it...

 

I am. Especially food!

 

gold to break $750.00

gold hit a high of $746.70 today. it seem like it will pass the $750.00 barrier. and look forward to $800.00 soon.

 

$800 would be the equivalent of $317 in 1980 (the year gold hit its all-time high price of $850).

 

you are right...

but it is better for gold and silver to keep moving up rather than doing nothing. while other goods moved up a lot. hopefully it will pass $800.00 or even higher and stay there.

 

I just sold a few 1987 Const $5 and an 1899-S $20 and got 98% of spot. Yeah the 1898-S was a common, got my moneys worth.

My opinion....

If you own gold that you bought way cheaper a few years ago, get rid of it. Gold is at $750 or so today Fri Afternoon. Take advantage of these highs and don`t look back.

I would not buy gold now at its highs. That is why I just sold.

Gold may very well pass thru the $800 range and higher.

If you bought gold recently, decide yourself whether to sell, hold or buy more.

If you bought gold when it was under $500/oz, SELL NOW!!! Take your profits!

Of course this is only my opinion....

 

Coin crazy wrote:

"Gold. Such a story. The rise in gold prices reflects several countries, primarily Asian/Pac Rim (S Korea & Russia as the top 2) adding gold to their treasuries to back their currency. Have you noticed that the US Dollar is taking a nose dive?"


Track a chart of the Euro/Dollar and overlay it over the price of gold in the same time frame.

Hmmmmm, seems the price of gold over the last year or two, mirrors the Euro/Dollar chart.

If it was so easy to predict what markets will do in the future, though, we would all be rich. Very Very Rich.
Hmm, just short this, and go long on that. So easy, isn`t it. NOT!!!

 

I'm hanging on to mine a bit longer

 

And I'll hang on to them just a bit too long.