It appears gold coins remain the Rodney Dangerfield of the markets. No matter what happens, gold gets no respect. Just ten days ago, gold broke to the upside above $1200 an ounce - but no one cared. Last Thursday it broke above $1210 and today it hovered much of the day around $1225 an ounce - moving within just 3% of all-time record highs. Still . . . barely a word.
Think about it. That's like the Dow moving to 13,580 or the S&P moving to 1484. Now, that would be news.
I actually heard one talking head say he would never buy gold again because he remembers how bad gold did 30 years ago when it ran to record highs in 1980 and then languished as traders blew up the dot com bubble, speculators blew up the housing bubble and then everyone blew up the stock bubble. Those bubbles all burst to account for the worst economic crisis in history, yet, it is gold that one guy remembers from 30 years ago.
Obviously he bought high and sold low. Sorry Bud!
If you are a gold investor this should all come as good news. All this means is there still remains so many people not yet exposed to gold that demand can hardly have reached any kind of peak. Yes, I agree this is baffling as it seems no one is anticipating any kind of good news from the markets.
When you hear about housing you hear about more foreclosures. When you hear about stocks, you hear about trade deficits. And, when you hear about bonds, you hear that the Fed's having to buy more of our own in order to finance the country.
You would think an investment that has a couple thousand years of history behind it as a safe-haven investment, would be almost impossible to get, especially in times like these.
So where is gold headed? Historically speaking, gold would still have to rise above $2400 an ounce to reach its inflation adjusted high. If it's true that gold is headed that high, that means today's gold is still half price. And the reason gold can barely catch a headline today is because those who say, gold can't repeat, have been saying that since gold was $300 an ounce.
Will gold run that high? I have no crystal ball but I am pretty happy watching it get there at a rate of return equivalent to 20% annualy for the last 9 years or so. And, until I see everything else turn around, I'll just keep watching.