Whether you choose to buy 1 ounce gold coins such as the American Gold Eagle, the Canadian Maple Leaf, the South African Krugerrand, the Chinese Panda, ad nauseum, you are basically getting an ounce of physical gold for about as cheap as you can purchase it. You can also buy 1 ounce gold bars, 10 ounce gold bars for about the same premium. The buy/sell spreads on these items, in the US, is in the same general ballpark—you will have to pay, currently, about a 8-9% premium above the intrinsic value of the gold content. If you go to sell today at the same price, you’ll get between 1-4% OVER the intrinsic value of the gold. These premiums are always subject to change, depending on supply and demand. Currently, the demand exceeds the supply by about 1000%(and this isn’t hyperbole)
These items are pretty liquid day in and day out, unless you live in a small town in rural Nebraska(for example). If you live in or around a major city, they’re incredibly liquid. If you’re savvy enough to deal by mail(which isn’t as dangerous as it sounds), they’re liquid from anywhere in the world.
As to whether gold is currently high, who knows. Is the DOW at today’s level “LOW?” I personally doubt it, for the short run. You might see it 25% lower within a month. Or not.
Obviously, everyone who didn’t buy gold just 3-7 years ago at $300-450 missed the boat. There are people who bought gold at $800 US in January of 1980. Today, they can make about 8% on their 28-year investment. Hmmmmm…wanna figure out my annual rate of return??? :eek: