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Investors are rushing to buy gold bars and coins. The US Mint sold 92,000 American Eagle coins last month, four times that sold a year ago and more than it shipped in all of 2007
This is not only a US phenomenon. Other countries' mints are reporting strong sales. John Reade of UBS reported large purchases of coins, seen as a safe haven investment.
Inflows into gold backed exchange funds surged in January pushing holdings to an all time high of 1,317 tonnes. Barclays Capital (NYSE:BCS)saw that last months flows of 105 tonnes amounted to half of the world's gold mine output for January. Mr. Reade said that investment in gold could double in 2009 compared with 2007.
UBS(NYSE:UBS) and Goldman Sachs(NYSE:GS) said that some clients are hoarding gold in their vaults. They said this hoarding could drive prices over $1000 per ounce this year.
Jewelry demand has fallen because of the current worldwide downturn. However, investor buying is keeping demand strong. Gold is being used to protect against weakness in world banking systems.
Would you buy gold or silver?
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Reader Comments (Page 1 of 1)
2-17-2009 @ 3:00PM
BHarrison said...
Well, gasoline went to over $4.00 per gal and then recently dorpped to around $1.78 per gal. The question is, is the price of gold now too much like $4.00 per gal. gasoline? If you buy at too high of a price, even with gold, you are doomed to lose in the long run . . . and of course the gold merchants are hawking the value of gold. And in the past, a lot of people lost a lot of money investing in gold. Everything is "relative" to your purchase price and then the subsequent value that you sell at.
2-17-2009 @ 4:01PM
charlie said...
Oh thank you obama for the stimulus plan. You had the guts to take taxpayers money and have the biggest spendingprogram in history. Despite a history of 100 percentage failure of this type of thing, you persisted with our money.
The wall street hit the worse level in a decade to celebtrate obamas folly. What a guy..wonder what he is gong to do tomorrow. God help us
2-17-2009 @ 4:04PM
charlie said...
If it fails, obama can say "i just didn;t spend enough" despite the biggest spending in history of the world.
It remeinds me of adolf hitlers statement when he saw all was lost. "i was just to good to them"
2-17-2009 @ 7:03PM
Chris said...
I think silver is a much better buy. Its undervalued to gold, its a precious metal - gold just talked about more.
I read some interesting stuff here, you can search all different types of information.
http://www.gotoguy.com/2008/08/19/commodities-are-gearing-up/