Collectors Look For A Golden Lining by Peter Rexford on Creators.com

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Collectors Look For A Golden Lining

Whether due to the economy or some extra free time, readers seem eager to find solutions to their questions about collectibles. Time to answer a few.

Dear Peter: A week or so ago, the price of gold again danced above the $1,000 per ounce level. We still see many commercials and ads about selling gold for cash. In your opinion, is this the best time to sell, or should we consider buying since the price is going higher? Help! — D.T., Bethesda, Md.

Unless you or someone you know dabbles in the occult or has psychic powers, your question is virtually unanswerable. If you would have bought gold just a few months ago in early July, you could have purchased it for a little over $900 an ounce. Today, you would be sitting on a 10 percent return — not bad in a market where you're lucky to get a 2 percent annual return in a money market account. Why gold has risen is a conundrum considering the stock market has soared as well.

There's also a matter of supply. If you want to buy gold, don't look to the U.S. Mint right now. On their website (www.usmint.gov), you'll discover that they have temporarily suspended the sale of all regular and proof "American Eagle" coins — traditionally what investors prefer. It is anyone's guess when they will start selling gold coins again.

Of course, coin dealers have traditionally been the best resource for both buying and selling gold and silver coins. They have an active daily market of sellers looking for a profit and buyers ready to speculate. However, even at a dealer you may find them short of supply on coins.

As for selling gold, I have to adhere to the investment adage, "Don't look back." In other words, if you purchased gold some years ago when the price was down at $400 or $500 an ounce, if you sell now you'll double your money. Better still, if you inherited five or six ounces of gold jewelry at no cost, you can now cash that in for thousands of dollars.

Can gold go higher, or much higher? Sure. It can also go down. Unless you're a die-hard survivalist or contrarian, you may want to "take the money and run." But I'm not a psychic.

Dear Peter: You've long said your favorite stamps issued annually are the "Duck Stamps." I know these are mandatory for hunters, but our son has fallen in love with collecting these.

(OK, so have we!) Can you give us information about this year's stamp? — A.P.C., Rio Vista, Calif.

The Federal Migratory Bird Hunting and Conservation stamp (Duck Stamp) has always been my favorite because of the unbelievable artistry of the design showcased on them. I also love the fact that around 90 cents of every dollar collected goes directly to the conservation and acquisition of wetlands. There's one other thing. Most of us are familiar with ducks such as mallards and those white ducks some people buy as pets, but there are many other varieties out there. Duck stamps feature all sorts of waterfowl, including many of those we may never see in person.

This year's release is a good example. The stamp features a pair of "Long-tailed Ducks." I can't say I've ever seen one, but they are an exquisite example of nature's variety.

The stamps are currently available at most hunting stores and many post offices. The cost for one stamp is $15 or $60 for a plate block of four. And consider this: Over the years, Duck Stamps have consistently held their scarcity and demand.

Dear Peter: You had once commented on storing coins or stamps in a safe deposit box. I lost that column but am interested in what cautions you mentioned. Is it a good or bad idea? — J.B., Bloomsdale, Mo.

I certainly recommend storing not only valuable/coins and stamps in a good safe deposit box but also any rare currency, documents and other valuables. I believe the caveat you might be referring to is where those boxes are located.

Safe deposit boxes are one of the best protections available against theft and fire, but another predator can be even more insidious — water.

During the flood of Iowa City, Iowa, in 2008 or New Orleans after Hurricane Katrina in 2005, many safe deposit boxes and their contents were saturated. Even a fire sprinkler going off in the facility can result in a few feet of water all but destroying your valuables.

There's no guaranteed defense but selecting (read: "demanding") a box at eye-level or higher helps your odds. Whether it concerns lives or other valuables, when it comes to water I always suggest, "taking the high ground."

Editor's Note: A JPEG visual of a gold American Eagle Coin has been sent with this column.

To find out more about Peter Rexford and to read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.