Posted on 07/08/2009 2:05:58 AM PDT by BGHater
Sales of gold and silver bullion coins were up sharply in the first half of 2009, when dealers were citing strong physical demand amid worries about other investments.
Sales remained strong but abated somewhat in late spring and early summer, but there are at least some signs it might be on the rise again, said one dealer. “Over the last 30 days, business has picked up again mostly because, I believe, there is a lot of skepticism still in the market about which way the economy is heading,” said Scott Thomas, president and chief executive of American Precious Metals Exchange in Edmond, Okla.
Bullion coins are meant to provide investors with a convenient and cost-effective way to add small amounts of precious metals to their portfolios. It is valued by the weight and the type of precious metal.
This is different from numismatic coins, which are valued on the basis of factors such as limited mintage, rarity, condition and age. The only coin in this category sold by the Mint in the first half is the 2009 Ultra High Relief Double Eagle Gold Coin that was launched in January. Sales hit 68,445 in the first half, the Mint reported.
The outlook for bullion-coin sales may hinge on whether inflation begins to rear its head or whether there are more credit-market problems, said James Cook, president of Investment Rarities in Minneapolis.
The U.S. Mint said it sold 680,500 one-ounce American Eagle gold bullion coins in the first six months of the year.
By contrast, in the first half of 2008, the Mint sold 180,000 one-ounce Eagle coins and 67,000 American Buffalo coins. (Release of 2009 Buffalo bullion coins is planned for later in the year, the Mint said.)
(Excerpt) Read more at online.wsj.com ...
betcha copper plated lead is even higher....
Bambi did wonders for the sale of gold and silver, bullets and guns, bulk food sales, water purifiers and other survivalist things.
On the other hand, he is a job killer.
WHY is gold valuable?
You cannot eat it or use it for fuel or medicine in times of EXTREME hardship. If we were in a severe depression and someone offered me a loaf of bread or a gold coin as a payment, I do believe I’d go with the loaf of bread.
I am talking about extreme times here (like people starving).
http://blog.robertringer.com/2009/03/11/a-little-game-of-old-maid-part-vii/
http://blog.robertringer.com/2009/03/13/a-little-game-of-old-maid-part-viii/ (answers your question.)
http://blog.robertringer.com/2009/03/16/a-little-game-of-old-maid-part-ix/
http://blog.robertringer.com/2009/03/19/a-little-game-of-old-maid-part-x/
While I agree on the utility of precious metals at time of severe shortages, it is meant as a protection of value against the time when things recover.
However, right now, there is little trust in the freedom of global markets in almost all types of investments. This distrust should include gold and silver. After a series of bubbles, how do we know that this is not just another mania or that a coordinated move by global entities and central banks in need of cash will not actually drive the present value down from its current level?
However, if gold and silver fall far enough, more folks will buy in, starting the cycle over again. The governments of the world have total control over currencies and are debasing them all, from what I can tell, as fast a possible.
Value is simply a consensus at a point in time. In a time of shortages, I expect a combination of direct barter and use of precious metals to facilitate trade among individuals. I am already seeing skill bartering/labor barter among people I know. I am not sure anything is going to be a straight-line extrapolation from the present forward. I expect lots of dislocations of everything that is necessary to keep our economy and civilization viable. Real skills might actually become our best hedge against collapse.
Some of the brightest folks I know, people who have called the markets correctly over 25 years, confess to having no confidence in any one particular strategy. It stands to reason that we should all be diversified as much as possible and that would include some form of precious metal.
Excellent question.......... I base my opinion on all of recorded history.......men set out on an ocean on a flat Earth to locate a land filled with gold....
So, based on history, gold will always have value...It owns a hell of a trend! Where did I read, "a quart of barley for as day's wages..."
....WHY is gold valuable?....
For the answer, read or listen to “The power of Gold” by Peter L Bernstein.
Gold has been the basis for trade since very early times. The current attitude of Americans is not really relevant in a discussion with very very long historical precedents on an international, truly global scale.
An odd response. If you were offered a choice between a loaf of bread or some fuel what would you take? If you were offered a loaf of bread or medicine, what would you take. In extreme times, people will still hunt and farm. They will also require a currency for trade.
Most bakers will make more than one loaf of bread per day. They will want to trade or sell that bread in order to aquire other things. In the extreme times you refer to, you can keep fiat currency....I'll stick with gold.
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