Showing posts with label Ways to react gold. Show all posts
Showing posts with label Ways to react gold. Show all posts
Ways to react to the gold pricing
Posted On 2008/05/24 at at 3:28 AM by let's profitWays to react to the gold pricing
When a commodity like gold hits a new all-time high, people take notice. That's what happened to gold back in March, when it burst through the $1,000-an-ounce level. Since then, the downward march of gold's price to around $850 today seems to have traced out a golden peak on the price chart. Here are three different reactions to the recent high price of gold, followed by some advice from market
1. Reaction as a consumer: The first reaction of many people has been to sell their gold jewelry or their old gold dental work that they've been saving in a dusty corner of their bathroom drawer. One retired dentist near San Diego has a side business as a dealer in gold scrap recycling, according to a story in the San Diego Union-Tribune today. He leaves his envelopes in dentists' offices offering to extract the gold from dental crowns, bridges and fillings that have been replaced and to pay the patient for the gold minus a 20 percent fee. According to the article, a "gold crown, usually about 67 percent gold, could bring the seller $40 or $50, depending on its size and thickness. At today's prices, a bridge could fetch $200 or so, after fees," Dr. David Epstein said.
2. Reaction as an international institution: The International Monetary Fund took one look at its bottom line in April and decided that it was time to sell some of the gold it has accumulated to help cover a budget shortfall of $400 million over the next few years.
3. Reaction as a trader for the short term: Traders are wondering what's next? Could the latest downtrend be a mere correction or something more bearish? One gold analyst quoted by Bloomberg said that “The pace of decline suggests gold will remain at risk to further corrections in the coming sessions… "
When a commodity like gold hits a new all-time high, people take notice. That's what happened to gold back in March, when it burst through the $1,000-an-ounce level. Since then, the downward march of gold's price to around $850 today seems to have traced out a golden peak on the price chart. Here are three different reactions to the recent high price of gold, followed by some advice from market
1. Reaction as a consumer: The first reaction of many people has been to sell their gold jewelry or their old gold dental work that they've been saving in a dusty corner of their bathroom drawer. One retired dentist near San Diego has a side business as a dealer in gold scrap recycling, according to a story in the San Diego Union-Tribune today. He leaves his envelopes in dentists' offices offering to extract the gold from dental crowns, bridges and fillings that have been replaced and to pay the patient for the gold minus a 20 percent fee. According to the article, a "gold crown, usually about 67 percent gold, could bring the seller $40 or $50, depending on its size and thickness. At today's prices, a bridge could fetch $200 or so, after fees," Dr. David Epstein said.
2. Reaction as an international institution: The International Monetary Fund took one look at its bottom line in April and decided that it was time to sell some of the gold it has accumulated to help cover a budget shortfall of $400 million over the next few years.
3. Reaction as a trader for the short term: Traders are wondering what's next? Could the latest downtrend be a mere correction or something more bearish? One gold analyst quoted by Bloomberg said that “The pace of decline suggests gold will remain at risk to further corrections in the coming sessions… "
Posts
