Gold American Eagle Sales Are Soaring Due to Fiscal Cliff Threat

December 10, 2012

Demand for gold coins among American investors has soared since the presidential election, as investors are growing increasingly worried about the lack of action to address America’s debt problems.

The US Mint’s sales of American Eagles, the most popular bullion coin, soared 131 per cent in November, hitting the highest level in over two years. November was also the strongest month in 2012 for gold Maple Leaf coin sales for the Royal Canadian Mint.

The political gridlock in Washington and the prospect of further quantitative easing when the Federal Reserve’s “Operation Twist” expires at the end of 2012 have fuelled demand for gold investments among investors.

While the jump in gold bullion coin sales highlights gold’s role as the preferred safe haven for investors, investors should realize that bullion coins make up a relatively minor sector of the investment market for gold coins.

Rare gold coins, for example, offer security, privacy and performance advantages over gold bullion coins. They are immune from possible government restrictions on private gold ownership. They are anonymous and, because of their scarcity, they can appreciate even when the price of gold is falling.

The experts at Coin Trader can help you select the gold investments that are right for you.

2% “fabrication premium”  we have today for bullion coins like American Eagles is similar to jewelry premiums in Asia.

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1987 Redux?

November 16, 2012

Many investors do not remember October 19th 1987.

That was the day the stock market crashed. The Dow fell over 500 points/23% in one day. The crash was a culmination of a decline that had started in August.

It is important to note that gold served as the best source of liquidity during that crisis and increased in price between October and the end of 1987.

We bring this up because there is an important article on Marketwatch that points out distinct parallels between the conditions that existed in 1987 and today:

Current drop echoes 1987 crash prelude

By Jon D. Markman

The Dow Jones Industrials have fallen 450 points over the past two days, and a lot of the blame has been placed on the re-election of the president. But anyone paying attention to the market over the past three months recognizes that the peak was actually made the week that the Federal Reserve announced a third round of quantitative easing. That was expected to be a positive event, but in retrospect, it ushered in a rolling thunder of value-eroding news events.

Soon after began a very underwhelming earnings reporting season, word of a deepening industrial slump in China, a broadening recession in Europe and the martyrdom of Spain. And then this week it suddenly dawned on people that if U.S. lawmakers can’t stop acting like stuck-up brats, then $1.2 trillion worth of ham-handed spending cuts and tax increases are about toplotz on red states and blue states alike in the coming year.

Independent estimates suggest that would shave four percentage points off GDP faster than you can say “sequestration,” or “defenestration” for that matter, and lead to millions of lost jobs. It looks like the president would be OK with that, since he booked a tour of Myanmar for next week.

In short, the election put an exclamation mark on a parade of indignities, but it is far from the only proximate cause. Investors have liquidated U.S. assets for a while; it’s just more noticeable this week.

http://www.marketwatch.com/story/current-drop-echos-1987-crash-prelude-2012-11-09?dist=afterbell


Gold Sharply Higher AGAIN as America Heads to the Polls

November 6, 2012

Last week we reported that the sharp sell-off in gold produced a great buying opportunity for investors.

Evidently, lots of folks agreed, because yesterday spot gold was up $8 per ounce and today spot gold rose more than $29 per ounce as bargain hunters flocked to the market to accumulate gold.

Investors were no doubt motivated not just by the buying opportunity prompted by last week’s correction, but by what the future holds.

No matter who wins the election today, at the end of the year, the US is still faced with the so-called “fiscal cliff,” which will prompt $400 billion in spending cuts and tax increases. And even those measures will do next to nothing to ease our national debt burden.

There are 17 trillion reasons to own gold.


Gold Rebounds Going Into Election Day

November 5, 2012

The price of gold rebounded today headed into election day tomorrow. Spot gold rose $8.00 per ounce to $1685 as bargain hunters took advantage of Friday’s sharp correction to pick up gold at low prices.

Speaking of the election, now is as good of a time as any to remind investors that no matter who wins tomorrow, the US still has a $17 trillion debt and an economy that has been stuck in the doldrums for 5 years. Moreover, we have still come off of years of negative real interest rates, a scenario that eventually should energize the bull market in gold once again.

Who ever the president is the next 4 years, we can all wish him the best, but we must all take action to safeguard our wealth and, given the circumstances, gold is best positioned to to that.


Gold at $5,000?

October 29, 2012

One of Wall Street’s true all-stars, who correctly forecast the subprime mortgage debacle back in 2007-2008 is now forecasting sharply higher gold prices over the next two years.

Peter Schiff, head of Euro Pacific Capital, thinks that the combination of runaway government spending and loose monetary policies will cause the price of an ounce of gold to climb to $5,000 per ounce over the next two years.

Note that Schiff sees this eventuality regardless of who wins the presidential election next week…

http://www.cnbc.com/id/49550053

Here is a video of Schiff’s statement on CNBCTV last week:

http://video.cnbc.com/gallery/?video=3000125017


The Great Inflation Cover-Up

October 22, 2012

The general consensus for quite some time in the US has been that inflation has not been a factor in the US economy.

But there is a substantial amount of evidence to indicate that inflation DOES exist in the US economy and has existed for some time. However, government agencies and big Wall Street insiders find inflation to be an inconvenient fact–so they cover it up.

The federal government manipulates and fudges the inflation measures to underreport inflation and Wall Street then parrots the government statistics to their own purpose. You see, historically, high inflation has been decidedly unfriendly for the stock market, so Wall Street has a vested interest in low inflation. High inflation is, of course, very positive for gold investments.

What’s the federal government’s angle? There are several. First of all, high inflation doesn’t help incumbents get re-elected. Second of all, high inflation gets in the way of the Federal Reserve‘s scheming…

There is a great deal of evidence that inflation DOES exist and has existed over the past decade. The report linked below provides evidence of rising price levels, despite the government statistics to the contrary…

http://www.theblaze.com/stories/not-just-gas-check-out-the-drastic-price-increases-on-these-21-everyday-items/


Inflation Takes Surprise Jump in Europe

September 28, 2012

The chickens may already be coming home to roost in Europe.

For some time Europe has had a very loose, inflationary monetary policy, so it should come as no surprise perhaps that inflation rates are already higher than expected.

Europe may very well be the “canary in the mineshaft.” Other regions of the world, including the USA, have adopted very similar monetary policies. Investors should take notice and invest in assets that not only protect them from high inflation, but actually benefit from high inflation.

Gold investments, rare gold coins in particular, are ideally suited for just such a purpose. They have historically outperformed paper investments during periods of high inflation. But the time to buy is now–before inflation shows up in earnest in US inflation gauges.

Note that in the article linked below, several of the European Union nations are in recession at the same time that these inflation numbers have surfaced. The combination of inflation with recession is known as stagflation, an economic affliction that is particularly damaging to paper assets and positive for gold investments.

Inflation in the 17 countries that use the euro rose unexpectedly to a six-month high in September…

No reasons for the increase were provided by Eurostat, as the figure was only a preliminary estimate, though higher energy costs are likely to blame.

http://hosted.ap.org/dynamic/stories/E/EU_EUROPE_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-09-28-06-46-37