I went to a gold/silver dealer, and he said he's got customers high up in the banking/financial industry who have significant orders with him to purchase gold. His orders have been on backorder now for up to six months (he still hasn't received it). He's worried and thinks the entire financial system will fold!

It was quite scary talking to him. I've not purchased my gold yet, but this sure had me thinking about more than just 1 to 6 months worth of cash and gold...

-- James (jastock@usa.net), July 30, 1998

Answers

If this is the case, why haven't we seen the price of gold going through the roof already???

Sounds like the dealer is trying to drum up more business.

-- Larry Kollar (lekollar@nyx.net), July 30, 1998.

I regularly view www.goldinvestment.com to check on the price of precious metals and coins. They indicate on their site that they ship immediately if funds are wired, and within a few days based on a check (quickly after it clears). Another dealer from whom I receive a regular newsletter indicates that business is very good, partly because of Y2k preparers, but no indication of any problems delivering immediately. <<<<<<<<<>>>>>>>>>

-- Dan Hunt (dhunt@hostscorp.com), July 30, 1998.

Larry, I think you're right! I talked to a friend,today, who's been in the coin business for 28 years here in Tacoma. He said that's "swill" and there is no waiting period anywhere! Dave sells all kinds of precious metals: gold, platinum, buillon, diamonds. You can access his web site at www.goldinvestment.com. He ships anywhere; told me last week he's been getting a lot of business lately from big city folk--New York, Chicago, etc.--who want the smaller gold coins, one tenth, and one quarter sizes. We discussed Y2K and he agreed there could be a connection.

-- Holly Allen (Holly3325@juno.com), July 30, 1998.

James,

Poppycock. Find another dealer, fast. Don't even waste breath talking to that guy any more. There's no problem with delivery on bullion, and while demand has gone up for US gold (pre-1934 coins)- and prices have gone up accordingly- they are still available also though individual dealers may have to hunt for material. What you are hearing from him is scare stuff and hype.

I have used Dillon- Gage Metals (800-375-4653) for some time with absolutely no problem. They can deliver by mail easily. If you wire the money to them, delivery can be expected in 4- 5 days. If you send a check, they wait for it to clear before they ship but the price is locked in when you make the deal by phone. BTW, I have no financial interest in the company- I'm just a customer. Shop around for your own peace of mind.

Consider having on hand 2- 3 months expenses in cash in small bills (starting now is not too early) and at least one bag ($1000 face value) of pre-1964 US silver dimes (called junk silver by dealers). I suggest dimes because if you have to use them for emergency money there's less problem with change. Those things are your 'insurance money'- equivalent to your checking account.

Buying gold is equivalent to a savings account. Lots of people argue over whether to buy bullion or US gold, saying that bullion will be confiscated. Well, nothing is safe from confiscation if someone in gov't decides to do it. It has been done before, 1934 being the most recent time. Your guess on this one is as good as anyone else's. Gold prices are down right now to near historical lows- it's a good time to get in, y2k or not.

Don't forget the other stuff too while you're at it- water, food, heat, light, security etc. are more important than $, if you don't have them when you need them and no one else has any to spare.

LPL

-- Lee P. Lapin (lplapin@hotmail.com), August 01, 1998.

The above answers are correct. However, the spot price in gold doesn't neccessarily depict the demand for the actual metal, rather the dollars strength or lack thereof and the action in the futures market.

Inventories in bullion are a non-issue. I can get as much bullion gold as anyone would like whether it be Canadian, American, Austrian, South African....you name it.

Pre- 1934 gold is another issue. Some pieces are harder than others and there's been- at least at my firm- a run on smaller quarter ounce US Pre-1934 gold. We have had to move into foreign quarter ounce pieces andwhen we do get US Pre-1934 pieces in-normally 200-400 a lot- they're gone in 24-48 hours.(Y2K purchases)

I would be happy to answer any questions concerning availability and purchase options E-mail markt@visi.com

-- Mr. Trimble (markt@visi.com), August 06, 1998.