No Real Alternative to Precious Metals|
October 23, 2012
This article was originally printed in Numismatic News.
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Gold and silver have entered a lower trading range in the $1,740 to $1,760 range for gold and $32.90 to $33.50 for silver.
This is purportedly on the lack of any real bad news out of the Eurozone. Some smart people think gold could go as low as $1,520 in a market shakeout. Nothing has changed and it is more likely that this is the market separating the weak from the strong.
I see headlines that gold is going to $2,200 and then another says the bull is dying. What do you believe? I find it comforting to look at the fundamentals. Precious metals are in limited supply and have been considered money for over 5,000 years. Paper grows on trees (actually in trees). Our governments just take that fancy paper and print some numbers on it at will. That statement is overly simplistic but in essence that is what is happening.
Our leaders in an effort to remain in power are selling the future to the highest bidder and our children and grandchildren will suffer unless we can maintain some hard assets for them. A report on mining.com mentioned platinum could be replaced as a car exhaust catalyst by a newly developed compound called cobalt-graphene. This could be significant. Platinum is much more an industrial metal than monetary.
The idea of passing along wealth to future generations affects the coin market, especially silver dollars and gold type. Unfortunately, much is done by marketing companies. They use greed and fear to motivate buyers to pay $99 each for Morgan dollars that are cleaned up sliders (AU-58), when real MS-63 coins are closing in on the $70 price line.
More Coin Collecting Resources:
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• The Essential Guide to Investing in Precious Metals
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