My Precious...
Posted on 05/13/2006 1:12:04 PM PDT by Diana in Wisconsin
With gold at a 26-year high, buyers and sellers in Madison have taken note and are trading briskly in the precious metal. Small investors are cashing in their holdings while buyers are scrambling in hopes that prices will continue to rise.
Gold hit $728 an ounce Thursday, up from $525 in January. Prices dipped on Friday, closing at around $711 an ounce.
"You're probably going to see it crest over $800 (an ounce)," said Mark Hermanson, co- owner of Capital City Coins & Jewelry in Monona. "There hasn't been much interest in gold and silver bullion. Three years ago when gold was $260 an ounce you couldn't get anyone to even look at it. Now that it's $700 an ounce everyone's calling, they want to buy it and they want a deal."
Analysts say investors are focusing on inflationary fears brought on by rising interest rates and on the possible impact of surging prices of crude oil and industrial metals.
Jerry Hermanson, Mark Hermanson's father and co-owner of Capital City said he remembers what it was like in the early 80s when gold last went over $800 an ounce.
"That was crazy," Jerry Hermanson said. "There was a line 20 yards long just to get in the door."
Investors were selling, hoping to cash in and reap huge profits. But this time high prices are encouraging some investors to buy.
"There are people who have a lot of confidence in the market," Jerry Hermanson said. "Most are holding what they have and not even thinking of selling yet. Others might be buying as a hedge against the dollar."
But Cheryl Hermanson, Jerry's daughter and a third owner in the business, warns that small investors should be careful. "They're buying high," she said. "It's probably not a good idea for individuals to invest in short-term speculation unless they're really market savvy."
Those most directly affected by rising gold prices will be jewelry retailers.
Lee Dorn, owner of Distinctive Image Jewelers at 6102 Odana Road, said the rising price of gold will make jewelry less affordable. He said the prices he charges for custom gold items are likely to go up, though he won't make as much money.
"The local jeweler will not profit higher because gold is more expensive, because our costs rise with the product," Dorn said.
My Precious...
I started buying silver 3 and a half years ago....on ebay no less, mostly englehard and johnsen matthey bars...stocked up a huge pile of it at an average of $3.75 per ounce.
I am either brilliant or just damn lucky
The dollar is down against just about every commodity traded internationally - not just gold but copper, silver, oil, natural gas and steel.
Also down against many currencies except noticably China's - China is perfectly happy letting us go deeper into debt to fuel their economy.
We're brilliant. Don't doubt it. ;)
My Dad is a big 'Commodities Trader Guy.' He talked me into investing in silver about 5 years ago, and while a daughter rarely follows her Daddy's sage advice (gotta learn things the hard way she said, with a divorce behind her from the marriage her Daddy warned her off of in the first place) I'm so glad I listened to him on this one...He loves my current husband of a decade plus. :)
Wa-Hoo! According to Dad, keep buying. It's still going up. Do so at your own risk! We're just winging it like the rest of the investors out there....though we are cashing in a little to tour New Zeeland and Australia this coming winter. Tee-Hee!
Capitalism & Free Markets Rock! :)
"China is perfectly happy letting us go deeper into debt to fuel their economy."
China doesn't control my bank account. Or yours. Invest as you see fit. :)
And I don't have any debt. It's all bought and paid for. The farm, my cars, everything in my house, my silver, etc.
How am I hurting anyone by investing in silver? It's not like I have a direct line to the Treasury or anything. ;)
ROFLMAO!
I had a boss years ago that bought a bunch of gold two days before it reached its all time high.
Looks like he'll finally be able to sell it.
Oh wait, he's dead.
I ended up buying 23,000 ounces off ebay.....The score of a lifetime
Too bad I sold 25% when it hit $9.50 six months ago
The rest is waiting for $100
And darn I am from Milwaukee originally, where in WI are you?
I grew up in West Allis! 99th & Lincoln. Small world, Ena Hey? ;)
My Grandma lived near Brewer Stadium (now, 'Miller Park,' d@mn them!) and both of my Grandpas and Dad & Mom all worked for P&H and Allis Chalmers through the years. We escaped in the 70's, though many of our family members still live in the Milwaukee Metro area. I think 99% of the Firemen in Milwaukee proper are still my Great Uncles & Second Cousins, LOL!
Right now I live on a farm in southern Wisconsin, 10 miles south of Madison, the Capitol. Married a farmer...and I've adapted well for a City Girl.
I love it here. I've lived all over the world (thanks to 20 years in the Army) but I've always come back to Wisconsin. Geographically, it's like our Homeland of Germany, so Wisconsin has always been home to us. :)
We have a 'Midwest Ping List' and a 'Wisconsin Conservative Politics Ping List.' If you want to be on one or both, let me know and you can keep up to date on the THRILLING adventures (Zzzzzzzz...) of we Midwesterners. ;)
God Bless Flyover Country! :)
"My point was that we have broader condition that needs to be addressed. There is limit to the dollar defense the Fed can do when trade and budget deficits are very large. I was just using your post as a jumping off point and I'm sorry if it sounded otherwise."
Thank you SO MUCH for clarifying that, because I've always liked your posts, too! I've always thought YOU were quite reasonable too, and I'm glad we're having this conversation! :)
That said, I totally see where you're coming from now. And I agree wth you 100% on the deficits and the obscene spending that our current Congress has been engaging in.
But, I'm also one of those dopey 'Survivalists.' See...if the dollar crashes and no one has money, I always have my coinage in hand. And you can always buy a loaf of bread for a Quarter cash...if need be. And you can always buy a pair of shoes for a Fifty-cent piece...if need be. And you can always buy an acre of land for a Dollar...if need be. ;)
You get my drift. Not only is investing in the physical coinage smart, but if the economy goes into the dumper (as Dad is also predicting a future 'Depression' which I hear about every day, thankyouverymuch...) he sees us as being the ones sitting on the 'Sack of Seeds' while the Repo Man drives off with others' TVs and cars and China Place Settings, and "valueable items" bought on QVC, etc. I guess he invisions us as the next "Bank of America" if all h$ll breaks loose, LOL!
I know. I sound like a Total Kookburger, but my Dad & I have always been ones to "think outside the box" and to make the best of whatever comes our way; especially in the next decade when it could very well be that the Dems are back in charge (Thanks, Spineless RINOs) and it all goes to H#ll.
We're just hedging our bets. And so far, so good! :)
"But its quite telling that metals have been profitable even in this time of low inflation."
Yes, it is. And it had the earmarks that the Commodities Freaks look for when deciding what to next invest in.
Believe me...Dad and I have been in it all...from Pork Bellies to Coffee to Cocoa to Sugar. It's been fun, but this ride on silver has been the best of all to date. :)
If your Dad and you haven't watched the Gold Rush 21 DVD, then you should.
http://www.goldrush21.com/
It will show you why gold is going much higher. You can view the trailer online free.
We have some gold, too. But silver is what's making is the big bucks right now. :)
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