Gold Quirk: It's Volatile but Holders Feel Secure

Source:

Gold has a long history of waxing and waning in allure. At the moment, it holds a particular attraction, given Americans’ worries about inflation, the risks in the financial market and the falling value of the dollar.

On Nov. 7, the market price of a troy ounce of gold bullion briefly touched $845.50, the top so far in gold’s current eight-year bull market and a 28-year high in New York trading. The news made headlines and became a hot topic on radio talk shows.

At Lexington Coin, a shop in affluent Lexington, Mass., the number of customers seeking to do business in gold coins spiked, the owner, Eric Carlson, said. Some customers were there to lock in profits, selling bullion coins containing an ounce of gold that they had bought five years earlier when gold traded under $350. Some were selling just one coin, telling Mr. Carlson they needed money to pay property taxes or car repair bills.

And some were buying, saying that they thought gold’s price would continue to climb. “The ones purchasing 10 coins at a time told me they were taking the money out of stocks and bank accounts,” Mr. Carlson said. “A woman buying three American Eagles told me she was buying them as a hedge against the price of her home heating oil shooting up this winter.”

Gold has a long history of waxing and waning in allure. At the moment, it holds a particular attraction, given Americans’ worries about inflation, the risks in the financial market and the falling value of the dollar.

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe