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.


American Consumers Turn Sour on Economic Outlook

December 7, 2012

Just in time for Christmas, consumer sentiment in America is taking a nosedive.

Americans are increasingly worried about the outlook for the economy, largely due to the fiscal cliff which is only about a month away.

This decline in morale has implications for the financial markets. It is difficult to see positive action in the stock market with Americans so worried about their futures.

In contrast, historically, hard assets, particularly gold investments, have appreciated during periods when Americans are worried, providing a degree of protection against bad times.

http://www.marketwatch.com/story/consumer-sentiment-nose-dives-in-december-2012-12-07

 

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GALLUP: Unemployment rate at 8.3%…

December 6, 2012

The US economy is NOT getting better. This has serious implications for the US dollar and the financial markets. NOW is the time to stock up on hard assets as a form of financial insurance. Coin Trader can advise you on the best hard asset investments for your personal goals and needs.

U.S. Unadjusted Unemployment Shoots Back Up

U.S. unemployment, as measured by Gallup without seasonal adjustment, was 7.8% for the month of November, up significantly from 7.0% for October. Gallup’s seasonally adjusted unemployment rate is 8.3%, nearly a one-point increase over October’s rate.

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http://www.gallup.com/poll/159104/unadjusted-unemployment-shoots-back.aspx


Beware of Bank Safe Deposit Boxes

December 6, 2012

Many hard asset investors store their holdings in bank safe deposit boxes, thinking that this is the most secure, private place to store rare coins and precious metals.

The video report below from ABC News should make you think twice about that mode of storage.

Coin Trader can advise you on the best ways to securely store your holdings…


Another Day, Another Downgrade

November 29, 2012

Evidence continues to mount of trouble in the world economy and financial system.

The latest evidence comes in the form of yet another downgrade of a nation’s credit rating by a major international investment rating firm.

This is the type of trouble for which hard assets, such as rare gold coins, are ideally suited to protect personal wealth.

The latest trouble does not come from the USA and its impending “fiscal cliff.” Nor does it come from the European Union, whose members Greece and Spain are in deep fiscal trouble.

The latest trouble spot is Argentina. Argentina’s financial position is so poor that Fitch rating services has downgraded the country to a rating so low that default is expected soon.

The impact of this on world financial markets is yet to be seen, but in today’s interconnected world, we can be sure that it won’t be limited to Argentina…

http://www.telegraph.co.uk/finance/financialcrisis/9707546/Fitch-downgrades-Argentina-and-predicts-default.html


Wealthy Investors Dumping Stocks, Real Estate and Businesses Ahead of Fiscal Cliff as Market Guru Warns of Market Collapse

November 13, 2012

 

As many readers already know, due to long-term irresponsible fiscal policies, the US government finds itself headed to the edge of a so-called “fiscal cliff.”

Policymakers in Washington are trying to strike a deal to head off the carnage, but their track record is awful on such deals. What we are soon to be faced with is a combination of large budget cuts and sizable tax increases, which will kick in if nothing is done.

Faced with the possibility of tax hikes, America’s wealthy investors are taking action ahead of time and it isn’t good news for the markets; wealthy investors are liquidating stocks, real estate and even whole businesses to avoid higher tax rates in the future. This is obviously terrible news for the stock market, the real estate market and the economy as a whole, creating the type of environment in which hard assets, such as gold coins, thrive.

http://www.cnbc.com/id/49792979

Meanwhile, long-time market analyst, Marc Faber of The Gloom Boom and Doom Report actually says that there will be no fiscal “cliff.” Nevertheless, he predicts that corporate profits are certain to disappoint, resulting in a stock market decline of 20% or more. Faber points to Apple Computer as a leading indicator; Apple’s stock has fallen 20% in recent months already.

http://www.cnbc.com/id/49802535

 

 


Stocks Tank Post-Election

November 7, 2012

The US stock market appeared to have an allergic reaction to the results of yesterday’s presidential election, with the Dow falling some 313 points, or 2.36%, today. The S&P 500 slid 34 points, or 2.37% and the Nasdaq Composite fell 75 points, or 2.48%.

Actually, it wasn’t just the outcome of the election that stocks were reacting to, there were other factors in play.

Traders were very concerned about the approaching fiscal “cliff” and fear that the sharply divided government and country will be unable to come to terms to deal with it as 2012 winds down.

In addition, traders are once again worried about Europe. Greece is set to have another parliamentary vote on yet another austerity package designed to prevent a frightening default and there is a great deal of uncertainty surrounding whether that vote will produce a favorable outcome.

What all this indicates is that the US and Europe are both awash in debt and the financial world is skeptical that either will take meaningful steps to solve their problems. This is an environment fraught with risk and, in a risky environment, there is no better safe haven than gold.