If the price of gold is at or near it's all time high...
MidLifeCrisis
Posts: 10,550 ✭✭✭✭✭
Why are people buying gold?
What happened to buying low and selling high?
I guess you'd call me a contrarian investor, but this makes no sense to me.
What happened to buying low and selling high?
I guess you'd call me a contrarian investor, but this makes no sense to me.
0
Comments
<< <i>One hundred years ago, collectors were probably paying then-record high prices for nice colonial coins. >>
Touché.
I will be the first to admit that I have bought my share of coins at the top of the market cycle. But I think there is a difference between buying high-end, pedigreed, legitimately rare colonials when they become available and buying common date gold or gold bullion. After all, it's a pretty safe bet that gold prices will fall again and you can buy all the gold you want at those lower prices.
--Severian the Lame
That's where they make the most money.
State quarters were made to be collected, not necessarily for circulation.
Every collector wants all 4 varieties of each one including the silver proofs.
In short, precious metals are being used faster than they can be found.
That makes for scarcity and higher prices. Gold could top $2000. Silver may hit $25.
JT
I collect all 20th century series except gold including those series that ended there.
<< <i>Asset reallocation. >>
At this point I would rather put my investment money into gold instead of my 201, I mean 401K!
Fred, Las Vegas, NV
World Collection
British Collection
German States Collection
<< <i>If inflation starts heating up and/or the dollar continues down gold will continue higher. Central reserve banks want to trade dollars for gold to diversify their reserves. Gold is not near its all time high if you adjust the previous high for inflation. So gold has a lot of room to run IMO. >>
That's how I see it too. Time will tell
and sudden reversal is very unlikely based on the recent market action. Thus, even if it does not
continue it's strong upside momentum, downside risk is very limited, IMO, making it a reasonable
gamble even at these "high" levels.
Gold has regained its luster as a currency. Hard vs paper. Take your pick
All paper currencies are suspect not just the sickly dollar. It's all relative. That's where we are at this point in time.
Most who don't own gold think a tops in place or is in a bubble phase having missed a huge run up.
Those who own gold think it's is under valued. Time will tell.....over time it's going much much higher imo.
MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>Fear. >>
Greed.
Beware the bubble.
Beware my brother-in-law.
percent of one's assets in gold as insurance against catastrophy of many types. This went out
of style completely in the "go go" '80's and "anything goes" '90's. In this century it's still not
popular among the bulk of investors despite the fact that the economic system hasn't been less
sound in generations. ie- there are still vast numbers of people who just might be jumping on
the bandwagon. This means the money already into gold might be a pittance compared to what's
to come.
The central banks can not stem this tide until they raise interest rates unless they can sell enough
gold to stop the bull. This is their intention and the tactic they've been employing since gold left
the long term benchmark of $300. But they aren't going to try to hold gold at these levels, I don't
believe, because it would deplete their stock more than they consider acceptable. It's more likely
they'll make their next stand at about $1600. But keep in mind that when they are able to start
raising interest rates again gold will retreat sharply.
This will not be in the near future.
<< <i>For any commodity that is market priced.... essentially half the people think it will head higher, half think lower. When those are out of balance the price changes. >>
I don't think it's "half the people", as much as it is "half the money". And those two are often very different.
<< <i>Why are people buying gold? >>
(it's still as pretty as ever)
What happened to buying low and selling high? >>
( for now, it's buy high,-sell higher)
I guess you'd call me a contrarian investor, but this makes no sense to me. >>
I'd call you about colonials because they make no sense to me
``https://ebay.us/m/KxolR5
<< <i>Beware the bubble.
Absolutely!
Gold is sure to go down as soon as the U.S. balances its budget and pays off its national debt!
<< <i>It's quite possible gold is cheap at this point in time and it just used to be really really cheap.
Gold has regained its luster as a currency. Hard vs paper. Take your pick
All paper currencies are suspect not just the sickly dollar. It's all relative. That's where we are at this point in time.
Most who don't own gold think a tops in place or is in a bubble phase having missed a huge run up.
Those who own gold think it's is under valued. Time will tell.....over time it's going much much higher imo.
MJ >>
I would imagine that at some point in 1921 gold reached its all-time high......in Germany. In 1922 and 1923 it exceeded that high somewhat.
TD
<< <i>Adjusted for inflation, gold isn't anywhere near its all time high. But even if it were, that wouldn't mean it couldn't go a lot higher from here. >>
Actually, I think it still has a long way to go. Back in '80 when gold's nominal price peaked around $850, it's real price adjusted for inflation was equivalent to approximately $2200 of today's dollars. So gold needs to go up about another $1000 for us to be where we were in 1980.
That said, I was also born in 1980
Michael Kittle Rare Coins --- 1908-S Indian Head Cent Grading Set --- No. 1 1909 Mint Set --- Kittlecoins on Facebook --- Long Beach Table 448
Lots of buyers, few sellers means a high price
Lots of sellers, few buyers means a low price
It is how markets work.
By definition a high price occurs when there are lots of buyers. Some say no one bought at the 1980 high price. Of course that is idiotic, because a relative maximum number of buyers is what caused the peak price. Some claim to have loaded up at the low price. A few making the claim did, but by definition a low price occurs when there are relatively few buyers. It is the way markets work.
Everyone wants to think they are a contrarian, but very few actually are. When everyone is wearing a contrarian hat, the contrary play might be to just play the trend.
<< <i>Economics 101:
Lots of buyers, few sellers means a high price
Lots of sellers, few buyers means a low price
It is how markets work. >>
That's how a *FREE* market works. Trouble is, there is so much manipulation going on it can hardly be called a free market.
I doubt that they are teaching that in "Economics 101" these days.
Ask yourself this.....was the Dow in a bubble when it first broke out above 1000 (on the 6th attempt over 16 years) and then hit 1150 in the early 1980's? Weren't those people who were buying stocks in 1982-1983 buying at the all time high? It probably made no sense to most people at the time....same story for those who bought gold in early 1978 after it recaptured the all time high set in summer of 1974. For the next 2 years, there was no such thing as buying low as pullbacks were negligible as gold went parabolic in short order.
roadrunner
<< <i>Adjusted for inflation, gold isn't anywhere near its all time high. But even if it were, that wouldn't mean it couldn't go a lot higher from here. >>
I have plenty of gold to get me by in super high inflation times, times we will soon see in the US. Gold will double quickly when the dollar is replaced by some universal money standard. Face it, hyperinflation in the US is just around the corner.
My concern is, what happens to the value of my US coin collection when hyperinflation hits the US?
Oops, already been said. Slow
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
SEMPER FI 2/11 1977-1981
"LAS PULGAS"
<< <i>
<< <i>Adjusted for inflation, gold isn't anywhere near its all time high. But even if it were, that wouldn't mean it couldn't go a lot higher from here. >>
I have plenty of gold to get me by in super high inflation times, times we will soon see in the US. Gold will double quickly when the dollar is replaced by some universal money standard. Face it, hyperinflation in the US is just around the corner.
My concern is, what happens to the value of my US coin collection when hyperinflation hits the US? >>
Your probable scenario is hyperinflation here and you are worried about your coin collection? The social order starts to break down three days into a hurricane, God help us if the US turns into Weimar Germany.
..... I say bring on the bubble. Bubbles are good as long as your on the right side while bubbling and also when seriously deflating. Bubbles are great money making opportunities.
<< <i>
<< <i>Economics 101:
Lots of buyers, few sellers means a high price
Lots of sellers, few buyers means a low price
It is how markets work. >>
That's how a *FREE* market works. Trouble is, there is so much manipulation going on it can hardly be called a free market.
I doubt that they are teaching that in "Economics 101" these days. >>
I never will argue manipulation. Personally, I believe almost all markets are manipulated at times in the short term. If there is long term manipulation of the gold and silver markets, odds favor manipulation to lift prices. The main reason being there is a lot more money to be made doing that, than depressing prices.
Let me add, that most forumites would do well to ignore all the manipulation stories. If true, there is nothing a small fish can do about it and best to try to be on the same side as the manipulators which ever side a person thinks they are on. If false, all the stories are meaningless noise that distracts a person from market action. Those that spend the bulk of their time on manipulation stories, often can't trade their way out of a paper bag, and likely never will progress, because they are focused on something other than the market action.
<< <i>Adjusted for inflation, gold isn't anywhere near its all time high. But even if it were, that wouldn't mean it couldn't go a lot higher from here. >>
WELCOM BACK!
Fred, Las Vegas, NV
<< <i>Why are people buying gold?
What happened to buying low and selling high?
I guess you'd call me a contrarian investor, but this makes no sense to me. >>
It's the bandwagon mentality. If everybody else is doing it then they want to to get themselves into the game because if everybody else is "making money" then they want to too. It's exactly what happened with real estate in the last few years and with stocks about a decade ago.
Authorized dealer for PCGS, PCGS Currency, NGC, NCS, PMG, CAC. Member of the PNG, ANA. Member dealer of CoinPlex and CCE/FACTS as "CH5"