Last week, after a two-day euphoria over lower interest rates, stocks retreated, oil broke through $81/barrel, and the dollar sank, reaching parity with the Canadian dollar for the first time in decades.

Don’t be surprised if you start seeing TV commercials urging you to “Buy Gold!,” insisting inflation is back with a vengeance. Put your wallet away for a minute.

That piece of advice doesn’t come from me, although I agree. It comes from folks who would be delighted to sell you gold: the Professional Numismatists Guild (PNG), a non-profit organization representing rare coin dealers, which recently issued a consumer alert.

By Mark Ferguson - COIN VALUES
In just one short month, the spot price of gold bullion has risen more than $75 per ounce from a low of $657.50 during mid-August to $735 in intraday trading during this writing in mid-September.

One of the reasons stated by economists and precious metals’ specialists for causing this rally is a record low exchange rate between the U.S. dollar and the European Union’s euro – now at about $1.40 per euro.

Another reason is the recent U.S. Federal Reserve interest rate cut of .50 percent to help boost the U.S. economy. The price of oil also hit a record of more about $82 per barrel recently, and using gold as an inflation hedge is often initiated by a higher oil price.

The price of gold hit a record high of $850 per ounce during January 1980. It then quickly retreated and bounced around during the next several years between about $500 and its low of nearly $250 during spring 2001. But since then, the price of gold has been on a fairly steady climb to the levels it is now hitting, after briefly reaching a 2006 high of $725 in May and then falling to $560.75 during October 2006.

ICTA (The Industry Council for Tangible Assets) has learned from the Internal Revenue Service that it would be prudent for investors NOT to include the Proof version of the US Gold Buffalo Coins in IRAs or other self-directed retirement accounts. This recommendation comes from a recent conversation ICTA had with an IRS official from the Employee Plans Technical Group. ICTA member dealers have been requesting clarification as to whether the new US Buffalo Coins are permitted in IRAs.

Although both Proof and Uncirculated Buffalo Coins meet the technical fineness and metal content criteria in the 1997 Taxpayer Relief Act, this law refers to allowable products as being “bullion” only. The U.S. Mint’s own website states that the Uncirculated Buffalo is a bullion coin, while the Proof is a collector coin. (more…)

Fallbrook, CA (PRWEB) September 24, 2007 — Investors are urged to become knowledgeable before purchasing gold bullion coins as a financial investment. The consumer education and protection advice is from the Professional Numismatists Guild (www.PNGdealers.com), a nonprofit organization composed of the country’s top rare dealers and experts.

“If you don’t know your bullion coins, you’d better know your bullion coin dealer to help you make responsible decisions,” advises Gary Adkins of Edina, Minnesota, PNG President. “To make an informed purchase about gold, silver or platinum, investors need to be aware of three crucial marketplace factors: The actual cost per ounce of precious metals; bullion value versus collector value; and timely delivery of merchandise.” (more…)

If you’re looking to secure your status as a Bond villain, now would be a profitable time to knock over Fort Knox.
Gold hit $745 an ounce last week, a 28-year high, as the dollar’s value slid, and Annapolis Coin Exchange owner Bob Hambleton already has seen more buyers and sellers looking to cash in. “Even a one-day spike we see an increase of business,” he said. “You can plot it.”

In the frenzy 28 years ago, Mr. Hambleton said dozens of people would be lined up in front of his Old Solomons Island Road business waiting to buy or sell gold in the hopes of turning a fast buck, forcing him to hire additional security.

“It was pretty exciting,” he said. “But we’re starting to feel that again.”