Thursday, May 13, 2010

Gold: Time To Buy, Or Sell?

Gold continues to spread into the mainstream media; the latest example, from the Omaha World-Herald, is a balanced look at the question of whether to buy or sell gold. The two experts are gold watchers, but the one inclining to sell expects gold to sink to $1,000 before heading up again. His reason for not buying gold right now is that it's become too popular as late.

Of interest is this ear-to-the-ground report from South Omaha gold dealer David Schroeder:
[The rise in gold] is sparking an interest locally, Schroeder said, from people looking to cash in by selling their jewelry and scrap gold, as well as investors looking to buy.

Interest in buying generally increases when gold prices increase, Schroeder said, but the big difference this time is the entry of what he calls “entry-level bullion buyers.”

“Regular people,” he said, “not your salaried position-type workers, your hourly workers are coming in and buying. They see the writing on the wall, they see the deficit climbing, they see the interest on our deficit. . .”

The big investors (often called “gold bugs” for their unwavering bullishness), are less active now, Schroeder said.

“They’re enjoying the increases in the numbers because they bought at a lower number,” he said.

Today’s buyers and investors fear they missed the opportunity to buy low and want to protect their wealth from future inflation, Schroeder said.

So, interest in buying physical gold is spreading beyond the usual confines. That's why the mainstream media is picking up on it.


  1. Yeah, the mainstream media is starting to cover the purchase of gold a bit more, but i also wonder when they are going to get a clue. I mean, look at this statement from the article:

    ---> The one-ounce Saint Gaudens gold coin that David Schroeder displayed Wednesday at his shop in South Omaha has increased in value from between $1,300 and $1,400 to about $2,000 since the beginning of the year, he said.<---

    While that is nice and all, I don't see how referencing the price rise of a Numismatic Gold Coin could best clarify the issue at stake in most gold investing: preservation of wealth.


  2. Maybe the reporter was loking for a big number to impress the reader - or maybe Schroeder wants to sell more of them.

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