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Needless to say, this has been a spectacular little run in gold, and gold's price performance has made quite a few new believers in the strength and staying power of this rally in the yellow metal.
After spending the last four years at an average price in the US$280s, gold has now run up from its February 2001 low of $256.25 to a price nearly a hundred dollars higher.
The last time gold traded below $300 was nearly nine months ago, the 16th of April of 2002, to be exact. So, today you can say that we are in a full-term bull market.
Gold is attracting a lot of positive attention, and even garnering favorable mention in the financial press. After all, what other positive investment area is actually openly available to investors these days?
Our business at Onlygold.com is stronger that ever. Bull markets are busy markets, with lots of new players. We have had a raft of new customers buying from us in the past few weeks.
And, the clients who have been with us for a while are, for the most part, still accumulating at the new prices.
Not that that aren't other who are selling. Many people are tempted by prices they haven't seen since 1997, and are liquidating positions that they may have held for many years before that.
It's all part of a healthy, two-way market. You have your sellers, as well as your buyers.
And in a bull market, they're both happy.
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A Personal Note
It's Saturday night, it's been a helluva week, and I'm sitting in front of the computer at home, trying to knock off a few words to freshen up the Onlygold website. I must say that I regret not having much time to devote to the writing of this column recently. It has been my habit for the past few years to set aside time to research, write, edit, and 'paste up' a few words about some aspect of gold every week or two.
Some of you have told me that you appreciate these articles, and I thank you. As I often say, flattery will get you everywhere.
I have even neglected the newsletter recently, although I promise Something will come out before this next week is over, honest!
Please bear with us for just a while during a very busy time in the gold market. We are putting in extra hours just to keep up with prices, manage inventory, answer the phone, take confirmations, make deposits, check in packages, wrap shipments, return e-mails, and in general stay ahead of an onslaught of new business.
Unfortunately for whatever 'entertainment' value this website may have, coming up with new content takes a backseat to our first priority, which is customer service. Getting your shipment or your payment out promptly will always happen first - everything else comes second to that.
And my basic thoughts about gold haven't changed a bit.
So feel free to avail yourself of our "Archives" of articles from this website, going back to 1999. (You can access those past writings from the link below this article, or from our homepage.) Admittedly, these old articles are not exactly great literature - Our motto is "Some timely, some timeless, and some just time wasters." - but they show how we've made the case for gold ownership over the years.
Back when gold was cheap and boring, in September 2000, we ran an article entitled "Gold Is Cheap, Boring, and Something You Should Own."
I made the positive case for gold near its 20-year low in February 2001 in the article "Gold Falls to $255, Bounces back Sharply."
A year later, on February 9, 2002, I declared "Gold's Perfect Storm on the Horizon."
On October 1, 2002, we ran the article "Making the Sunny Case for Gold," in which I laid out today's rational financial decision to own gold, in contrast to that old infamous crime against nature known as "goldbuggery."
A month ago, on December 13th 2002, I asked "Is Gold At Its Tipping Point?" The jury's still out on this question, but I strongly feel that we are, in fact, at that tipping point.
All these articles (and a few dozen others) are available in our Archives. You can read them there exactly as they were written, "warts and all."
And when I get a breather and have some time, I'll try to add some more articles about gold.
Because, to me, gold is a fascinating metal which will always be part and parcel of the human economy. To paraphrase Mark Twain, 20th century rumors of its obsolescence were greatly exaggerated.
And in the 21st century, we are already finding out that gold is quite alive and kicking.
-Richard Smith
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