Gold Investing - The Price of Gold on 09/11/2001

It's hard to believe 10 years have gone by since the tragic events of September 11, 2001. I remember it well, glued to the TV for hours, and am sure most of you do also. In case you haven't been reminded of it recently, the price of gold on that day was $271.00 and silver was priced at $4.18. I have seen different figures for these metals on that day and am using those that have appeared in Richard Maybury's Early Morning Report newsletter.

At the time of this post, spot gold is at $1852.10. That is a handsome profit if you bought gold in 2001 and are still holding on to it. And yet I'll bet there were those talking down gold at that time saying it was over-priced and wasn't going any higher than that. We seem to be blessed with "experts" casting doubt on the sanity of buying and holding gold. Here is an amusing video that appeared on CNN's web site in which the presenter "talks about the complexities and misconceptions surrounding gold". He doesn't pooh-pooh gold entirely but questions the future value of gold whereas a $20 bill will always be worth $20. What he doesn't say is what that $20 will buy a year from now or even six months from now (two gallons of gas and a loaf of bread?). You can view the video here. It isn't very long and the pictures of gold are worth it.

Earlier I reported on the price of gold and silver on 9/11/2001. Here is an article that presents various asset classes and how they have fared in the last 10 years. If you have the courage to view this, it can be found here. I found it very interesting.

Last article to share with you is a blog entry that appeared on the King World News Blog. The respected Stephen Leeb says "Expect Enormous Gains in Gold & Silver". This is a quick read but Mr. Leeb makes some very hard-hitting statements. As an example, "Gold is going to become the asset of choice in this country and right now it is not even considered to be an asset class (by the mainstream). It will be ‘the’ asset class in the next several years. You’re looking at things you don’t even want to think about because if you say what could happen, people look at you like you’re a lunatic." I encourage you to read this - it is here.

Current gold statistics from the U.S. Mint through 9/10 ...

one-ounce gold eagles - 17,500, year-to-date 690,000;
half-ounce gold eagles - 0, year-to-date 61,000;
quarter-ounce gold eagles - 0, year-to-date 70,000;
tenth-ounce gold eagles - 5,000, year-to-date 325,000.

Add to those August numbers 4,000 one-ounce 24K gold buffaloes. Silver eagles stand at 651,000 so far in August and 29,602,000 so far for the year. I will be adding more detail on silver on my Silver Investing Blog very soon.

As you have probably noticed, I post entries on this blog when I have something useful to share and am in the writing mood. I'm not sure when the next one will be since I am scheduled for surgery on 9/15. Thanks for stopping by and reading my posts.