Gold hits highest level since 1996 (Why Gold Coins Are A HOT Item)

AFP via Yahoo! News ^ | December 31, 2003

[PJ-Comix]

LONDON (AFP) - Gold prices rose to a new near-eight year high in London as the continued weakness of the dollar, coupled with fears over terrorism, pushed the metal ever higher.

On the London Bullion Market the price of an ounce of gold stood at 417.25 at the morning fixing, up from 416.25 dollars on Tuesday.

It is the highest price since early February 1996, when gold rose to 417.70 dollars.

However that was an interim, or "spot", gold price. Wednesday's fixing -- two of which are made per day on the London market -- is the highest such price since February 7, 1990, when the price hit 423 dollars.

The main factor behind gold's recent rise has been the slump of the dollar, which has fallen to a series of recent lowest-ever levels against the euro due to concerns over the size of the US current account deficit and low American interest rates.

A weaker US unit makes dollar-traded gold more affordable to investors outside the United States.

Additionally, fears over possible terrorism attacks over the holiday period have tempted investors to put some of their money in the safe-haven option of gold.

More rises could be ahead, said analyst James Moore from specialist website TheBullionDesk.com.

"Four hundred and eighteen dollars should keep the metal capped for today (Wednesday) but a drive to 422-5 dollars could well be on the cards as full trade resumes next week," he said.

[PJ-Comix]

This is why the gold coins I've been selling lately on eBay have been selling so great. I recently sold an 1852 gold liberty coin for $137.50. And YET the woman I sold this coin for still gave me grief for charging the 25% for selling it for her. She wanted a complete rundown on why I "deserved" 25%. Instead of a long arguement I just sent her the eBay search engine results showing that the coin I sold had the HIGHEST non-AU sales price of any coin of it's type for the past month. If she had sold it herself she would have only gotten about $110 for it PLUS she would have had to pay the eBay and PayPal fees (which I pay out of my 25%) which would have resulted in her getting LESS than $100 net instead of the $103 net which I gave her. Plus I also had to do ALL THE WORK.

Sorry for the rant but folks who agree to let me sell their eBay items for them and then second guess the fee is a big pet peeve of mine.

Anyway, owning gold coins is always a good idea.

[.cnI redruM]

True. They impress your friends, even when the specie backing them is in the toilet.

[coloradan]

Is it possible that people are starting to think that greenbacks are just so much ink on a piece of paper, as if the government just printed them at will?

[William McKinley]

Buy low, sell high.

[Protagoras]

Anyway, owning gold coins is always a good idea.

Doesn't help much when the government decides to confiscate it. You better bury it in the backyard if you want to keep them away from your emergency funds.

[PJ-Comix]

There was an interesting History Channel show yesterday about gold coins. Lack of minting facilities during the gold rush meant that most miners had to pay for things with gold dust. The mormons in Salt Lake city also had their own mint back then and any of those mormon gold coins are worth quite a bit now.

What I find fascinating about gold coins is how little wear they show despite their age. The gold 1852 libery dollar I now have looks almost freshly minted despite its age. I love looking at it under the magnifying glass. In fact, I think I'll take another look right now.

[PJ-Comix]

Doesn't help much when the government decides to confiscate it.

They did back in the 1930s when ownership of gold coins was declared illegal. What percentage of gold coin owners actually turned them in? Also what did the government do with the coins that were turned in? It is painful to thing that they melted them down.

[Pikamax]

what are the reputable sites/companies to get gold coins/products? Interested in building up some assets and Gold looks to be one way.

[Protagoras]

I don't know all the stats, but I know if you kept them in a security lock box at a bank or S&L you were not allowed to open them and take their contents out without a federal agent observing you. If you had gold, they took it and gave you pieces of green paper for it.

[Sweet_Sunflower29]

Buy low, sell high.

Those are certainly words to remember.

Gold is not merely symbolic of wealth; gold IS wealth".

I purchased all but two of my $50 Eagles in 1996-1997; if I remember correctly, spot price for some of those Eagles was absurdly low; maybe around $264-ish. I bought a total of 10 and just sold my first one on Ebay for $433.50. (yay)

Auri Sacra Fames
-Virgil


But...I really, really REALLY wish that I'd invested in PLATINIUM (current- $812/oz) a few years ago, when spot was something like $360/oz.

Oh well.

[William McKinley]

I am more of a stocks man myself. But if I were going to invest in metals, I think I might go palladium.

[PJ-Comix]

what are the reputable sites/companies to get gold coins/products?

eBay is a good place. Look for the feedback rating of the sellers. There is no way a seller with a high eBay rating will jeopardize himself by selling you fake gold coins. What I do is to magnify the pics of the gold coins very large and post them on Vendio.Com.. The normal eBay pics are too small. When the bidders supersize my eBay coins that I posted from Vendio, they can see every little detail.

One thought I had was going down to South America and buying gold coins with U.S. dollars. For example, the 1930 Uruguay 5 peso gold coin sells on eBay for between $105 and $120. I was wondering if it would be possible to buy that same coin down in Uruguay for $90 U.S..

My overall suggestion is to NEVER buy gold coins (or anything gold) from a company that will only give you a certificate for them. You definitely want to have the actual gold coin in your hands.

[robertpaulsen]

The gold charts track the highs and lows of gold prices from the 1975 historic gold prices to year 2000 gold prices

[djf]

This whole situation is very interesting. I have heard there are contracts for gold delivery (written on paper), and the sun total of the amount of gold represented by these contracts is equal to five times the actual amount of physical gold on the planet. If people should decide that they demand delivery of the physical, the price could go... oh well, you get the picture.

[PJ-Comix]

I bought a total of 10 and just sold my first one on Ebay for $433.50. (yay)

Psst! Scan your next coins at 1200 dpi and then upload them to Vendio. Then link those Vendio images to eBay so your bidders can supersize them. It gives them a lot more confidence to view them that way than by the small eBay images. Also start your auction at an initial bid price of $9.99 with NO RESERVE. It pays to spend the extra small amount on a 10 day auction and make sure it ends on a Tuesday or Wednesday night. (I ended some auctions the evening of Christmas Day with good results). Anyway, use those tips and your next few gold coin auctions just might end up nearer to $500.

p.s. And hold off on listing any more coins until AFTER about Jan. 15.

[PJ-Comix]

I have heard there are contracts for gold delivery (written on paper), and the sun total of the amount of gold represented by these contracts is equal to five times the actual amount of physical gold on the planet. If people should decide that they demand delivery of the physical, the price could go... oh well, you get the picture.

This sounds like a formula for getting ripped off. Gold coins IN HAND are the way to go.

[FReepaholic]

>>...Buy low, sell high....<<

Which is why now might be the time to buy the dollar.

[FReepaholic]

>>...One thought I had was going down to South America and buying gold coins with U.S. dollars...<<

Any problems/restrictions on bringing gold into the US?

[Sweet_Sunflower29]

I've been watching palladium as well and have to agree with you.

I just think platinum is SO beautiful!

[Chewbacca]

Try www.usagold.com (1-800-869-5115 in Denver, CO)

Or

www.southwesterngold.com (1-800-545-6575 in Albuquerque, NM. Ask for Phil. He is the coin guy.)