Hello everyone, one of the greatest thing about gold coins is they are an investment you can hold in your hand. I found a really neat video that documents somebody's gold bullion coin collection on You Tube. The collection is relatively large with Krugerrands, American Eagles, Philharmonics, Maple Leafs, and more. Definitely a fun watch for those interested in gold bullion coins.
Sunday, January 13, 2008
Saturday, January 12, 2008
Gold Hits $900 But There Is Still Upside Left
Gold briefly touched $900 per ounce on Friday. This is a new record and height for gold in dollar terms. What does this mean for gold investors? I'm sure everyone is thinking the same things. Did I miss out? Will gold rally higher? Is this the top? My opinion is no, no, and definitely no. While gold is hitting new highs in dollar terms, we are far from the previous peak when adjusting for inflation. Adjusting for inflation, gold would need to rally well above $2,000 per ounce. So, you have definitely not missed the bus and the gold rally is just getting started.
So far we have been looking at this rally as growth in assets. What I'm most concerned about is inflation. It's not that gold is rallying but really that the US dollar is falling (or better put tanking). Each dollar you don't have hedged is worth less. Taking this line of reasoning into account, you are definitely not too late. Investing a portion of your assets in gold is very prudent regardless of future price volatility because you are hedging against a falling US dollar.
So far we have been looking at this rally as growth in assets. What I'm most concerned about is inflation. It's not that gold is rallying but really that the US dollar is falling (or better put tanking). Each dollar you don't have hedged is worth less. Taking this line of reasoning into account, you are definitely not too late. Investing a portion of your assets in gold is very prudent regardless of future price volatility because you are hedging against a falling US dollar.
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