Fri, Sep 26, 2008 | Jared Woodard
The Associated Press reports that the US Mint can’t keep up with the demand for gold coins:
The U.S. Mint is temporarily halting sales of its popular American Buffalo 24-karat gold coins because it can’t keep up with soaring demand as investors seek the safety of gold amid economic turbulence.
Mint spokesman Michael White said Friday that the sales were being suspended because demand for the coins, which were first introduced in 2006, has exceeded supply and the Mint’s inventory of the coins has been depleted. [...] “People are scared. Gold has become a safe haven,” said Michael Maroney, a vice president of sales at gold dealer Monex Precious Metals in Newport Beach, Calif. [link]
Ok, if that’s not a contrary indicator, we don’t know what is. The rule of thumb here is that some sort of bottom must be forming when people go from being like this guy:
to being one of these guys:
We’ve created a chart that should help clarify the relevant levels of panic. When people start buying actual gold coins as a portfolio hedge, we can’t help but wonder whether the worst isn’t over, you know?