I’ve recently been buying some gold-related stocks, including miners, but today I sold a bit of my physical gold. Prices were getting a bit out of wack, so I was able to sell coins that I bought a year ago, when gold was at almost exactly the same price, for 30% more than I paid.
I still hold some bullion coins, but no longer hold any collectible gold coins — Steve Sjuggerud is still recommending purchases of St. Gaudens Double Eagles because they haven’t gone up as much as gold, historically, but in my case I was willing to buy them when they were at almost no premium and want to sell them now that they’re at a significant premium of close to 50% over the price of gold.
Gold is over $1,000 again this morning, at least for a brief moment, so I’d rather buy gold-related investments that reflect last Summer’s lower gold prices and sell investments that are already pricing in expected contiinued price spikes in the price of gold. This is not to say that I have any idea where gold is going, and gold-related and similar commodity investments remain at about the same percentage of my personal portfolio, but this seems like it might be a chance to sell high and buy low in taking advantage of investor fear.