Gold Sales Skyrocket


1-4-oz-krugerrand-sprinbok-sideAs the world looks at the financial markets and shudders, investors have turned back to a standard of value for thousands of years- gold. In the last month (January 2009), the US mint shipped more American Eagles than it did in the first SIX months of 2007. Gary Dugan, the chief investment officer for the US bank, said, "...I never thought I would be getting calls from clients saying they want a box of krugerrands." But indeed those calls have been coming, from investors both large and small.

Usually when the stock market and the value of the dollar fall, people invest in gold. This makes sense, as the intrinsic value in gold is something you see, you can touch, and imparts a feeling of security. Not surprisingly, gold was up in January, and has been rising since October. The movement in gold seems to be driven by the very wealthy, who are apparently tired of the stock and financial market's performance and are looking to consolidate their position in gold. GFMS precious metal consultancy estimates that the demand for bullion coins, such as the krugerrand, reached its highest level in 21 years. Merill Lynch is predicting that gold will surpass its all time high of $1,030 an ounce by June 2009. So for small investors, what does this mean? Well it seems the wealthy and the analysts believe the price of gold is going up. Take their advice with a grain of salt, do your own research on gold Krugerand prices, and make an informed decision for yourself. If you do want to buy Krugerrands, we can certainly help in pointing you to the current auctions on just the right size, whether that's 1/10, 1/4, 1/2 or a full ounce Krugerrand.

Sources
Telegraph
Financial Times
Financial Times

Comments on this entry are closed.

Previous post:

Next post: