The price of gold has been rising. What will happen if Bush wins the election? What if Kerry wins the election? Will the election of one of them tend to push the stock market up and the price of gold down? (I’m guessing that a bullish market would make people get out of gold and into companies, and a bear market would cause the reverse. LMK if I’m wrong.) Or will the price of gold continue to rise no matter who wins? (Assuming the outcome of the election would have any effect. If not, then what would make the price of gold rise or fall?)
The gold market is a very strange thing. If often seems to be driven opposite to logic. Fear is a big driver for gold; any hint of war or terrorism will bring a little spike in gold prices, maybe. Gold investors will tell you that gold is a good hedge against inflation; gold’s history shows it isn’t. The very best thing you can say about gold is that when you lose, you won’t lose everything. That compares well to…say…putting all your money on the roulette wheel in Vegas. :rolleyes:
I don’t want it for investing. I just want to have a collection. I traded my '79 Krugerrand for silver several years ago, then sold the silver when I need the money. I want another Krugerrand. I have a Canadian ounce, and I want an American one.
You’re getting into conspiracy territory. Essentially, gold is the opposite of the stock market (not entirely, but this is usually considered good enough). Buying a 1 oz (or less) coin for a collection shouldn’t really let the price of gold affect you. You also have to recall that there are companies that have to mine this stuff and if the price gets too low, they’re not going to continue mining. If the price gets too high, more mines will reopen their production and drive the price down.
Gold is traditionally a safe-haven investment, used as a hedge against inflation, so there’s that to consider too. There are also a lot of gold bug investors who some argue are keeping the price of gold artifically high.
There are a couple other threads going on currently re: price of gold and gold standard that I think you may be interested in.
Check out www.123gold.com and www.gold-eagle.com and www.kitco.com for some decidely pro-gold sites. There’s a lot of reading required and lots of hucksterism, but you should find everything you need to know there.
Re: coin collections: samclem is a coin dealer IIRC and would be the best guy to ask.
If you just want a few gold coins, go for it. The price fluctuations shouldn’t be that big an influence. I thought you were talking about a serious part of your portfolio. Coins, by the way, are priced somewhat differently from the metal itself, but not enough to make a difference to the small-scale hobbyist.