Richard Russell has been writing the Dow Theory Letters and daily market commentary for 52 years. He is well respected around the world for his knowledge of the markets. He uses technical analysis to forecast action in the stock market. He recently wrote this to his subscribers:
“Yes, everybody is searching for the ultimate safe haven. I pick gold. The ironic problem with gold is that it is quoted every minute against currencies. If you have a safe haven item like a Picasso, do you quote its “Possible” price every hour? No, you relax knowing that it will always represent wealth. The same can be said of a great diamond. But because it is quoted hourly, investors worry about gold. I’ve said, and I’ll repeat it, figure your gold in number of ounces, not dollar value. When the dollar is history, gold will still be here, and it will still be an eternal item representing WEALTH.”
This is such a great statement. Gold has always held its value. People get nervous with the day-to-day price action in the market, but gold needs to be thought of in terms of the big picture. If you are a day trader then you need to be concerned with the day-to-day, but a typical investor needs to use gold as a safe haven first and foremost, and a safe haven is a long-term investment.
Rare gold coins are even more so a long-term acquisition. Rare gold coins/numismatics do not typically fluctuate every day, therefore they are less volatile in their price action. They tend to lag behind bullion in terms of timing. If the price of gold rises dramatically, rare gold coins typically take a few days to respond. It should be noted that the more common a coin, the more it will fluctuate with the spot price of gold. The rarer issues will not be affected as much by the spot price of gold’s rising and falling.
Rare gold coins, are like a Picasso, “you can relax knowing that it will always represent wealth.” So stop watching the day-to-day action and relax with the peace of mind that you own something that will always represent wealth.