Posted on 05/10/2006 2:29:02 AM PDT by wotan
SINGAPORE -- Gold rose to a 25-year high above 700 dollars an ounce on Wednesday, prompting some investors to take profits on bullion's sharp rally this year, while platinum surged to a record high on speculative buying.
Gold has risen around 35 percent this year as investors diversified into precious metals as a hedge against global tensions, including over Iran's nuclear ambitions, rising energy costs and uncertainty about the dollar's outlook.
(Excerpt) Read more at money.inq7.net ...
BUMP
I've got a lot of US gold coins of recent mintage. Is this gonna end up like the early 80's when pennies were bringing more per lb. as copper than their face value?
Gold?
Buy titanium, that's where the money's being made.
They're just sending people on a fools errand.
Got a piggy bank filled with pennies?
In overnight trading copper hit $7,900 per ton.That's near $4 per lb.
Let's see...10 pennies on my postal weigh 1.1 ozs. A roll would be 5.5 ozs.
Yep. I think you're right. Selling pennies for scrap would pay more than giving a roll to the bank for a 50¢ piece.
Pennies are now made of Zinc with a copper coating. Have been since about 91 or 92, I think. Only old pennies are close to pure copper, but they were closer to bronze, having a tin component also..............
IIRC, the US Mint lowered the copper content in pennies not soon after. This was one reason that the 'wheat' pennies dissappeared so quickly. They also lowered the silver content in the other coins.
Take one of the "newer" penmies an cut it in two with a pair of lineman's wire cutters (its easy) and see the zinc. It looks like aluminum...........
not soon = not long
Need more coffee!!!!!!!
Any thoughts on recent US gold coins?
Well, guess the kid's piggy bank is safe.
And if zinc hits $4,000 a ton, I expect we'll see pennies made of dog biscuits.
Gold coin, any country's gold coin, US, Swiss, South Africa, Canada, China, etc. is "worth" the same according to weight. Actually, the "value" of gold NEVER changes. The "worth" of the paper currency fluctuates. If you went back to, say, George Washington's time, an ounce(troy) gold coin would buy the same amount of goods as it would today. Go back even to Caesar's time. The same gold coin buys the same amount of goods. It's the paper that is changing, not the gold............
I understand. I didn't ask my question properly. What I meant was, aside from collectors' value, is the gold content in these coins now worth more in paper than what their face value states?
I'm not sure I understand the premise of your question. The gold is always worth more than the paper, that's why it's always referred to as a "hedge" against inflation. The holder's value does not inflate nor deflate with the times and crises du jour. Gold is ageless and timeless. If, for instance, the "price" of gold hits $1000 per ounce(troy), what does that tell you of the "value" of the paper dollar? It has gone down, not up as most people will say. Let's say it went to $10,000 an ounce. The paper dollar is almost worthless, then. Let's say it goes the other way, $10 per ounce. The paper dollar would be nearly on par with the metal itself, which it once was $35 an ounce. The gold is THE STANDARD, not the other way around......
The face value of a 1oz U.S. Platinum Eagle is $100 legal tender. Similarly, a coin/bullion dealer will pay $1200+ for the platinum coin today.
One would have to be a tad nutty to pay for a $50 item with a 1oz U.S. gold eagle.
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