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Ardent Listener
Administrator
USA
4841 Posts |
 Posted - 07/09/2009 : 20:31:49
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Catching The Gold Bug
By LARRY LIGHT
Worried about a harrowing, inflation-ridden future, Scott Van Steyn has found the answer in a batch of glittering one-ounce gold coins. In fact, they make up a large chunk of the physician’s assets.
“There’s 2,000 years of history to show that gold is the best thing to own during bad inflation,” says Dr. Van Steyn, a 45-year-old orthopedic surgeon in Columbus, Ohio. “People used to laugh at me for buying gold. They don’t anymore.”
Gold: Headed For A Bubble? Picks And Pans From Soros, Paulson Sales Of Silver, Gold Coins Soar More and more investors are acquiring physical gold, or bullion, in the form of small bars the size of iPhones or coins like American Eagles and South African Krugerrands. Individuals’ bullion purchases almost doubled last year, amid apocalyptic panic over the financial system, to 862 metric tons.
Lately, that panic-driven demand has given way to a more subdued, yet still potent, fear that stocks will suffer as the recession grinds on for a long time, so gold makes sense. At the same time, there’s a rising anxiety about inflation among people like Dr. Van Steyn, resulting from the Obama administration’s massive stimulus spending.
“When you’re in uncharted economic waters, people buy gold,” says Shawn Price, manager of the Touchstone Large Cap Growth fund, which holds several hundred ounces of the stuff.
Certainly, holding bullion carries its own risks, such as keeping it safe. And you also run the risk that gold, as it has in the past, will disappoint investors lured by the storied metal’s special gleam.
Although gold buying by investors has fallen from it 2008 peak, it is still high. The first quarter’s 130 metric tons is 50% higher than this decade’s average quarterly volume, and analysts say sales for the rest of this year should remain strong. (A metric ton is 10% heavier than a standard U.S. ton.)
While gold use for industrial and jewelry purposes is way down because of the recession, robust investor demand has kept prices aloft. In April, when talk of inflation resurfaced, gold prices climbed over $900 per ounce, hitting $983 in early June. It has since drifted down to $909, thanks to such factors as India’s recent doubling of import taxes on gold. For much of the last decade, though, gold has been on a tear, with prices tripling since 2002. Over that time, the Dow Jones Industrial average is down 10%..............continued (see link) You must be logged in to see this link.
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Think positive. |
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Ant
Penny Hoarding Member
USA
894 Posts |
Posted - 07/09/2009 : 23:12:05
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The best line in the whole article?
This:
"More and more investors are acquiring physical gold, or bullion, in the form of small bars the size of iPhones [. . .]"
LOL!  |
Lovely dimes, the liveliest coin, the one that really jingles. --Truman Capote
Coins are the metallic footprints of the history of nations. --William H. Woodin |
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Ant
Penny Hoarding Member
USA
894 Posts |
Posted - 07/09/2009 : 23:14:58
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Oh, and this:
"Gold owner Richard Dempsey, 63, a vice-president at Bank of New York Mellon, keeps some of his 60 gold coins in a safe at his Point Pleasant, N.J., home and some in a safe-deposit box. “I like to know it’s there,” he says."
Yeah, until a thief reads this article. Security fail.  |
Lovely dimes, the liveliest coin, the one that really jingles. --Truman Capote
Coins are the metallic footprints of the history of nations. --William H. Woodin |
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wagsthadog
Penny Hoarding Member
USA
565 Posts |
Posted - 07/11/2009 : 13:21:56
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Hi there-
Yeh. I like to know my $500,000 worth of gold coins are safely buried under the cobblestones in my back yard.
Yuk yuk!!
wags |
Only when they CAN'T have it, ......THEN they'll want it.
I love Cents. If you get an UNC box, you win. If you get a regular circ. box, you win. If you get a zinc box, you don't lose....so you still win. |
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Catching The Gold Bug
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