Golden Words by George Resch

Welcome to the Camino Coin website. Our goal in creating this site has been to help our clients become better informed buyers or sellers of precious metals products. From time to time we will post articles that provide insight into the bullion and rare coin markets ad the state of the economy.

With the recent brief rally of the US dollar and the dip in the price of gold, some customers have asked whether the “bull market” may have ended. To provide some perspective we offer you a pair of interesting charts. The first shows the price of gold since 2000. On September 11, 2001, gold was $280 per ounce. It rose to a recent high of $1,033 for a rise of over $750? Bull markets of this strength and duration seldom suddenly reverse themselves.

The second chart puts the price of gold into an even longer range perspective. It shows that while the purchasing power of an ounce of gold is substantially above what it was almost 100 years ago, even the strongest of currencies are worth only a miniscule percentage of their earlier value. Thus, “The historical record is that the world’s major paper currencies, in terms of what they will purchase today are worth only from about 1/1000 ^th to 1/4 of what they were worth in 1913”.




		Given the dismal historical performances of paper currencies and the spectacular performance of gold over the past decade, it seems most unlikely that we have seen the peak in the price of gold. Until we see the Dollar becoming more and more valuable, gold is likely to continue to rise. Back to Top