Random News: Value of My Buffalo Gold Coin, Supermodel Refusing US Dollars, and China’s Diversification Plan

Eight months ago, I bought an American Buffalo gold coin from Bullion Direct (take a look at why I chose Bullion Direct) when the price of spot gold was around $650 an ounce. With gold price reaches 27-year high, the appreciation of my gold coin is also significant. The total cost of the coin back in March was $685.14 and on Bullion Direct, the same coin was quoted at $865.30 before shipping and handling. Even at the spot gold price which could be the price if I sell the coin, my profit could be $150, or a gain of nearly 22%. But I am not selling it

Early this week, Bloomberg.com reported (thanks Erica Hawksworth from CRC Public Relations for pointing me to the source) that Gisele Bundchen, the world’s richest model, refuses to accept US dollars as payments as the value of the dollar continues to drop:

When Bundchen, 27, signed a contract in August to represent Pantene hair products for Cincinnati-based Procter & Gamble Co., she demanded payment in euros, according to Veja, Brazil’s biggest weekly magazine. She’ll also get euros for the deal she reached last October with Dolce & Gabbana SpA in Milan to promote the Italian designer’s new fragrance, The One, Veja reported. Bundchen earned $33 million in the year through June, Forbes reported in July.

The weakening dollar, which reached record low against euro, actually fueled the demand for the precious metal as investors seek safe heaven to hedge against further decline of the dollar.

Meanwhile, news just came out (Bloomberg.com) that China, which holds the world’s largest foreign reserves at $1.4 trillion mainly in dollar based assets such as Treasury bonds, may diversify its reserves to favor “stronger currencies.” If such diversification is indeed implemented, it could further pressure the dollar.
As an investor, do you hedge against the falling dollar?

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