More Investors Buying Gold As A Safe Haven
DENVER (CBS4) – For some investors gold is the big safe haven. CBS4’s Paul Day took a look at the local gold buying fever to see if it’s too late to get in on the action.
At Rocky Mountain Coin it’s all done discretely to protect a buyer’s privacy.
“We have customers that may spend a couple hundred thousand dollars,” gold broker Klaus Degler said.
“Normally we mail it out, it goes registered insured, it goes right to their home,” Degler said.
CBS4’s Paul Day held a 6 1/4 pound gold bar worth $160,000. Yet he found out gold coins, like the American Eagle, are much more popular.
Degler said the coins harder to counterfeit.
Degler is the coin company’s president. Day and Degler watched the daily trading board to see how the price of gold made a rare stumble on Thursday. Some gold investors took profits, perhaps covering their losses on Wall Street, according to Degler.
Over the past 10 years gold has way outperformed the stock market. Over the past month it’s up 10 percent and has risen about $450 in the past year.
But is it too late to cash in on the gold buying fever?
“Well, we’re in different times. The world economy in general is in shambles and people are concerned about preserving their assets,” Degler said.
Gold is definitely worth owning, according to a veteran stock broker Day spoke with. But he cautioned against loading up on it now, saying gold is capable of going into a crummy 20-year market that could start Friday.
Even gold sellers like Degler caution that buyers should beware.
“There’s a lot of unscrupulous dealings out there right now — people passing off gold which is not gold,” he said. “You have to be careful.”
Copper is also a treasured commodity right now.