Buying Gold Now is not Easy

Back in March, gold was $1000 an ounce and there was no problem buying as much as you wanted. Gold is now sitting in the $700+ range, and the demand is greater than ever. Individual investors are buying like crazy, countries like Saudi Arabia and Iran are moving their dollars into gold and China is thinking of moving (more likely, already moving) some of their huge store of dollars into gold.

What does this mean to you, the small gold investor? Right now it means gold coins and bullion are hard to come by. Many dealers have none to sell, and those that do are marking up prices to meet demand. This is not the time to be switching everything into precious metals. It should be a reminder that if you buy gold regularly, you are able to average your costs over the long run and you won't be paying a big premium overall.

Keep an eye on Ebay gold coin auctions. Many times gold coins with numismatic value end up selling for close to the same percentage over melt as bullion coins. This can be an opportunity to profit when gold settles down as the spread on numismatic coins will tend to expand again.

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