This Spring I have bought some gold coins: Chilean pesos, Krugerrand etc. After losing a tiny bit this Summer they are all shooting skywards together with gold price. Mexican 50 pesos have gained 65€ in little less than two months: a shame I didn’t get more.
But there’s one thing that’s been bugging me. US gold dollars haven’t moved an inch on the European market ever since I have checked the prices before making my purchase. The $20 St Gaudens was 862€ back then and it hasn’t moved one tiny bit. Why is that? Dollars and pounds are the most traded coins on the European market, yet dollars are stuck to six months old values and pounds haven’t moved more than an asthmatic ant with some heavy shopping ([;)]). The gold trader I’ve bought my coins from swore that dollars would be the coins to buy back then: was he simply trying to sell some unwanted stocks or was he plain wrong?
Thanks to anybody who may answer my silly question.
This is just my opinion, I feel that the next bubble will be a gold bubble. Gold being the last bastion against a world government, it must be inflated and then destroyed.
While I am sure that gold in the long run is always a winner, I also agree that right now there’s a lot of speculation in the market and though I’d like to get more gold it won’t surely be at these prices. Palladium and other precious metals are still very depressed compared to gold and I’ll probably get those with “end of the year” liquidity unless I can find some good deals in the local pawn shops.
To get back to the original topic anyone has any idea why US and UK gold coins are still so depressed compared to other coins?
Gold is a store of wealth. As such, the value of gold will go up when the value of the fiat money goes down. That is what is happening in the U.S.
The value of the USD is going down, the value of the Euro is not. Therefore the value of gold is going up only against the USD.
Look at the charts of 1. the USD against a basket of other currencies. This is called the USDX. 2.The value of gold plotted against different individual fiat curriencies.
OK… but what about gold dollars? A $20 coin contains almost as much gold as the Krugerrand and gold is good in any form right now, right? All in all given the present gold prices US gold dollars would be a good buy. Yet judging by values this isn’t happening. Everybody seems focused on either Kruggerrand or Latin American coinage, Mexican Pesos experiencing what can only be described as a boom.
Also I wouldn’t bet against gold going up only against the US $. It has gone up against the euro steadily over the past months: when the Valenza gold excahnge closed on Friday it was 800.65€ per troy ounce. A record. And it will still go up.
Perhaps it is market manipulation by the US and UK currency controllers?
Their war chest is likely filled mostly with coins from their home country. In an attempt to calm inflation fears, perhaps they are putting this gold on the market to prop up the value of their currency relative to gold?
If so, this might explain the discrepancy that the OP mentions due to an overstock of US and UK coins.
Sounds like a good opportunity for arbitrage to me.
Stay away from numismatic gold. You are paying too high of a premium, and rarely will you find a collector willing to give you the full value. Stick with Krugs, Eagles, Pesos. The best gold to own is bullion gold from your country, if your country doesn’t produce bullion then stick with Krugs. They are recognized more easily around the Globe. Also American Eagles are a close second, and if you live in America, then stick with these. They command a 100 premium right now, but they also sell at 61 dollar premium, at least that’s what I’m getting them for.
Also, take delivery. Own your coins, not promises to them. Old American gold is all over Europe. It is more common than European gold. This is because of earlier gold redemption by European Central Banks.
Old american $20 are almost an ounce of gold. Their price outside of America reflects their weight. If you want american gold then just buy eagles. They are $50 dollar bullions coins produced in the last two decades. Outside of America. Stick with Krugs and gold from the nation you reside within.
Just a question since you got me interested… How exactly would they (whoever “they” may be) go about doing this? Maybe I’m rather naive given my age and this may still be abstruse to me in many regards. But, can someone fill me in on what he’s referring to?
Edit: I understand that efforts are made by the US govt to suppress gold prices. But, I’m unsure if this is what he’s referring to.
Just an older example. But i was speaking from opinion when I was talking about world government and so forth. So first off American’s where using housing as a store of wealth. It was a fairly good one because it compensated for inflation to a degree and also had tax benefits, now I would say that the carry trade that was allowed to happen and the sub prime crisis that ensued was deliberate in order to destroy that asset class. So whats left, precious metals are the other historical inflation hedge. The elites definitely know that the public will get wise to inflation and will be seeking a hedge, gold is a very obvious choice. The gold price is also held artificially low through gold leasing, if I understand the concept correctly. So one would simple stop leasing gold and allow a run up in price, the market always over compensates on large swings. The inflations fears will cause a panic in this direction. Then you dump all the gold you hold onto the market in gold leases again, at negative rates if you have to. Then it all comes crashing down, now the public will fear gold as an asset class as well, whats left? Only Caesars money, unless I’m missing something. Thats my crazy scenario
I haven’t used this guy in awhile, but when I was in Germany he would mail me the gold/silver and tag it as bronze medallions. Never had a problem with him, but it has been a couple of years since I dealt with him.
