Gold Hits New Low, Buying Opportunity?

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Now that we are at an historic low – Okay, the lowest price in two and a half years – is it time to buy gold? The problem with buying gold after a precipitous drop is that the metal and the popular stocks generally do not fall in accordance with the spot price for gold. Yes, you can buy gold on the commodity markets and get the price. I have seen that coin and bullion prices have hardly followed any of these drops. If you are a buyer, you are going to find it hard not to pay a significant premium to the current price. This was not the before the first drop in gold. Prior to that most coin and bullion prices were barely above the current price. That told me that everyone considered gold over priced. I think if you can buy at the current levels you are likely fine. Don’t go call one of those popular gold selling services you see on radio or television. You are better off going to a coin show and picking gold up from dealers that feel like they have a bit too much. If you are a significant buyer, they will sell you coins or gold bullion near the spot price. I prefer American coins minted domestically as they are the easiest to get in and out of. Watch out for the bars that have plagued the bullion markets of New York in the past year. Some where lead bars coated in gold. They fooled even some astute buyers. That’s why I like the minted coins from the US Mint. Nobody can yet fake the detail of such coins.

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