|
Buyers of Physical Gold Coming Out In Droves
 | By Patrick Heller, Market Update
April 29, 2008 |
Gold has retrenched from its mid-March peak over $1,000, closing today just under $900. What have gold investors done?
When gold topped $1,000, my company enjoyed a flurry of demand from existing and new customers. After gold's price was clobbered on March 20, several buyers emerged, as did sellers concerned that the price might fall further. For the next few weeks, activity slowed.
At my company's booth at the Michigan State Numismatic Society show two weeks ago, we spent the highest amount in 28 years for any coin show. The bulk of our purchases were bullion-priced gold coins. There was little demand for bullion-priced gold, which is not typical.
Since the price of gold dropped sharply on April 18, later falling below $900, buyers have spent huge amounts buying gold, matching levels last seen during 1999 Y2K buying frenzy. Retail liquidation has not stopped, but is minimal.
Demand is strongest for low-premium issues such as Austria 100 Coronas, US American Arts Medallions, and Krugerrands.
In my opinion, at most gold may lose another 5% before it surges back over $1,000. Once it goes back over $1,000 to stay, I expect the price to quickly rise to at least $1,200.
Add to: del.icio.us digg
With this article: Email to friend Print
Something to add? Notice an error? Comment on this article. | |