A buddy of mine is a gold coin dealer who tells me when gold hit $1000 he was hit with a flood of sellers, and nearly found he could not make any more market himself. As I understand it, these retailers are backed by wholesalers who buy up what they take in. A question and a lesson:
If there was a rush of sellers at $1000, how come the price did not go down (it's now $1027)? Because more people bought than sold, on balance? The lesson: don't wait for the top, whether $4000 or $8000 an ounce, to unload. The door will be so crowded you'll likely be unable to unload your gold at that price, and have to take what you can get. Better to safely sell at $3500 or $7500, or whatever your guess is.
Sunday, March 16, 2008
Gold Rush
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