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This blog is published by Andy
Waldock. Andy Waldock is a trader, analyst, broker and asset manager.
Therefore, Andy Waldock may have positions for himself, his family, or, his
clients in any market discussed. The blog is meant for educational purposes and
to develop a dialogue among those with an interest in the commodity markets.
The commodity markets employ a high degree of leverage and may not be suitable
for all investors. There is substantial risk in investing in futures.
I came across this in the Casey Daily Dispatch, this morning. Due to the number of inquiries into taking physical possession of Gold Bullion, I thought I'd post this as a reasonable means of physical acquisition. Please understand that this is neither a recommendation to buy physical gold nor, a solicitation for the resellers listed in the following post.
Generally speaking, Gold is a hedge against U.S. Dollar depreciation. It has been my experience that this hedge is more easily executed via the futures markets than in the physical market. However, in the best interest of our customers, I'll always try to provide you with the best information I can find. After all, the only bad decision is a poorly informed decision.
Buffaloes Are Back!
By Jeff Clark
You may recall the U.S. Mint stopped producing the American Gold
Buffalo coin late last year when demand for all things gold and silver
skyrocketed and they couldn’t keep up. I was personally disappointed, because I
love that coin.
Well, I’m glad to report it’s back on sale! Beginning this
Thursday, October 22, you can once again buy the 2009 Gold Buffalo. The U.S. Mint
is officially releasing the coin for sale that day, and you can purchase them
from the Mint directly or from any dealer who’s got them available.
What many people don’t know is that the Gold Buffalo is the only
U.S.-minted 24-karat gold coin. Wait, you’re saying, isn’t the American Eagle
24 karats? Nope, it’s a 23-karat coin; it contains one ounce of gold, but it
also contains an alloy, about 10%, presumably to make it sturdier. The Buffalo
contains no alloy and is thus the purest form of gold you can buy.
If you’d like to own a Buffalo, I’d suggest calling Asset
Strategies International (1-800-831-0007). Why? Even though you can’t buy it
today, they’ll take your name and number now and then call you on Thursday to
lock in a price. They’ve also got the best price I’ve seen: they’re currently
asking a 6% premium (or lower for larger orders).
This is a better deal than Kitco, for example, because they’re not
taking orders yet and also said their premium is likely to be at least 8.25%.
Keep in mind, though, that premiums could easily be forced up if the demand,
like last time, is strong. I suspect it will be for this popular coin.
If you think the gold price is going to fall and could thus get it
cheaper, I’ll mention that the U.S. Mint projects they’ll produce enough coins
to keep up with demand. This doesn’t mean your dealer couldn’t run out, but
hopefully the mint’s calculations are correct and there will still be plenty of
coins available at later times. No guarantees, though, and premiums will certainly
fluctuate.
