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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Goldman Sachs, Bank of America, UBS all issue warnings to investors on US economy

September 10, 2012

What we’ve been seeing in the stock market in recent weeks and months could very well be the ultimate example of “irrational exuberance.”

Investors have been chasing the stock market higher in anticipation of the Federal Reserve turning on the money pumps and debasing the US dollar.

How is it that investors have come to expect a positive outcome from that?

Well, volumes could be filled answering that question, but we’d like to report a more useful exercise for your time: three of the world’s largest financial institutions have issued warnings about the US economy which can only be taken as a signal to get out of the stock market and get into safe havens.

Goldman Sachs, Bank of America and UBS have all issued such warnings in recent weeks and investors best pay attention. When folks in the business of being cheerleaders for the stock market start waving red flags, it is time to head for the exits before things get REALLY ugly…probably after election day in November.

UBS economist Drew Matus warned on Bloomberg TV that there are signs that the US economy is headed for its worst long-term decline in 60 years:

http://www.businessinsider.com/ubs-capital-stock-us-economic-decline-2012-8

Bank of America’s top economist, Ethan Harris, warns that current conditions are the equivalent of the “eye” of a hurricane. For those who don’t know, conditions are very calm and even serene inside the eye of the storm, but once it passes, the worst of the storm immediately rises up:

http://www.businessinsider.com/bofa-us-economy-eye-of-the-storm-2012-8

Finally, as if all that was not enough, Goldman Sachs chief US equity strategist, David Kostin, warns that the approaching “fiscal cliff” is a lot worse than investors realize and investors in the stock market are being set up for a nasty fall:

http://www.businessinsider.com/goldman-fund-managers-hope-and-ignoring-experience-fiscal-cliff-2012-8

What all this suggests is that investors need safe havens and alternative investments for the future. Rare coins and precious metals fit that bill nicely, since they have historically moved independently of stocks and are not subject to many of the risks that negatively impact paper assets…