Gold Below $1500?

Tim,
That's sounds to me like it came out of the mouth of someone who thinks the current president is:
A) A Muslim
B) A Kenyan
C) A Communist
D) The antichrist
E) All of the above

Answer: E - All of the above

Gold started its upward climb long before 2008. I think investors saw how much money we were spending on wars and believe that would have long term consequences and a major impact on the US and world economy. Obama has done nothing to dispel investor misgivings, ergo, the price of hold has continued to increase. I can't imagine a change in presidents would cause even a 20% correction, especially knowing the histories of the two potential candidates for the office.

I don't think that the price of PMs is as attached to the political side of things as others may think. Even if Ron Paul were elected as president, the effect on the PM market would not be nearly as great as a drop from $1700 to $500 would indicate.

Also, I haven't heard any comment from Romney that indicates he cares at all about PMs or would do anything to strengthen the US dollar. A stronger dollar would definitely impact the PM market but there doesn't seem to be a lot of real interest in that. Printing lots of weak dollars seems to be "the answer" to our economic problems.

Of course, those of us who understand REAL economics instead of the current trend in fake economics do not think this at all. We also understand that a real economy is built on a solid foundation of saving and manufacturing and not on borrowing to fund consumption or on lousy business models that continue to operate only because the government backs them with unlimited tax money.

And that sounds like it came out o the mouth of someone who thinks the current president is:
A. No Muslim
B. Not Kenyan
C. Not a communist
D. Not the antichrist
E. All of the Above



Seriously (and that was all in fun - nothing else so please don't take it that way!)

I agree that the PM market is not directly tied to the president himself. In fact if you do a study of the ups and downs of the US economy, you will find it is the economic/political leanings of the Legislative branch that dictate the financial health of our nation. After all, they are the ones who pass the bills/new taxes/pork barrel spending/ tax cuts etc.

When people have their money taken, and they feel some sort of need for something secure, they will tend towards PMs - this is just history. The Legislative Branch in the last days of Bush was the same as the first two years of Obama's term. In fact, Obama was one of the senators who was voting for the same types of laws the Legislative Branch was passing/for in his first couple years in office.

People tend to blame just the president for the entire economic situation. Now, yes, when the legislative branch is of the same mindset/political opinions of a president, then rubber stamping happens (as we saw when silver was hitting almost record highs in the last 2 years) and results are tied closer to the president in reality. But the current PM-hike started under Bush while the majority of Congress and the House were the same political majority as in the start of the Obama years.

People have always felt a need for security and PMs have, historically, given them this haven. If the economy gets to a common sense point once again (a... yeah....) then PMs will sink again. History has shown this.

edited for syntax

The only answer I have for you Hawk is this. It is the mind of the current owner that makes the clad Ike so special. I have seen raw circulated Bicentennials listed for $30+ on other selling venues by those who do not know any better. I didn't make back over there yesterday to grab those Franklin's either, I had to work all day.

I agree with Ed as usual, more smoke an mirrors to make it look as if the econ is improving.....

According to the creators of the 1-70 pricing scale, an ms66 should sell for 10% more than an ms60.

There can only be one "best", so prices are not based on relative quality, but on "best" and "something less". If there are only a few in the best known condition, that "condition rarity" means someone out there will pay big money to show that his coin is bigger than the other guy's coin.

I see approximately the same thing with the NCLT proofs I collect, Ed. There is a world of difference between MS69 and MS70 coins. I'd say the markup is at least 25-35%, sometimes up to 50%, depending on collectibility (is that a word?) and rarity. As an aside, I actually have noticed a marked difference in MS69 and MS70 coins in the small handful of examples I've seen. Not sure if this is the norm.