• seperator

What kind of gold buyer are you?

Everybody knows gold has been going up, right?

You would think so. However, I had an e-mail from Pat Heller an online writer for our e-newsletter and he mentioned that some dealers were taken unawares by a 10 percent move higher in the price of Mint State gold $20 coins as they were setting up at the Texas Numismatic Association show.

That is the definition of volatility – when even professionals are taken by surprise.

With Europeans rushing into the gold market because the euro has been sinking, it would seem that this becomes a selling point for more American investors to jump in. They bid up the price of Mint State U.S. gold in consequence.

Is it rational to buy fairly common gold coins and pay high premiums just because they are Mint State?

Rational is probably not the right word. But it does happen a lot.

Buyers pay premiums over bullion value for common coins in strong markets that disappear in weak markets. This has happened time and again.

That’s why it is so necessary to stay on your toes if you want to make moves in this area.

Traders love volatile markets because they can make money on the price swings. Investors who buy at market low points and sell at high points over long periods of time make money, too.

Buyers who stampede into things on an adrenalin rush generated by rapidly rising prices can easily be whipsawed with large losses. The rush turns into buyer’s remorse.

So be a long term investor, or trade day to day, but don’t be an investor who acts only when gold generates a new headline.

This entry was posted in Buzz. Bookmark the permalink.

One Response to What kind of gold buyer are you?

  1. shenwenwen says:

    Come and get you love jewelry in Linksoflondonstore. If you want to buy gift for your family or for your friend, Linksoflondonstore jewelry is your best choice. You know, with literally thousands of new products flooding the market each holiday season it can be hard to find just the right present. Narrowing down your choices to six great gifts will make things much easier for you and your wallet. links of londonWhen considering Links of London- presents for others it is important to get caught up in the latest trends. Fashion gifts should always be considered and one of the most fashion gifts for a friend is jewelry. Jewelry comes in many different forms making it easy to find just the right style or design for the most special woman in your life. links of londonIt is also possible to customize jewelry in such a way that will increase the value and thoughtfulness of your presenthref="http://www.linksoflondon.uk.net">links of london</a>It is also possible to customize jewelry in such a way that will increase the value and thoughtfulness of your present

Leave a Reply