Alas, the TRUE reason there is no gold left...
Posted on 11/27/2009 7:12:09 AM PST by dennisw
The U.S. Mint has announced that will stop selling 1-ounce gold bullion coins. Demand has been so strong that they've effectively run out of 2009 American Eagle coins.
They sold 124,000 coins in November alone, after selling 115,000 in October and September.
Have no fear, they plan to resume coin sales in early December.
Reuters via CNBC: Produced from gold mined in the United States, the 22-karat American Eagles have been novel items among collectors and investors since their introduction in 1986. Each coin has a face value of $50 but it is sold by authorized dealers at a premium to the price of gold.
(Excerpt) Read more at businessinsider.com ...
TRANSLATION
Being Feral employees they are going to goof off for a few weeks then start selling the 2010 au coins sometime in December. My bet is no more newly minted US gold until January or February
“Authorized dealers” sell them at the gold “premium” price. But what do those dealers pay for them? If the government is selling them for anything less than the fair value, then they are essentially just fattening someone else’s wallet.
Time to invest in more gold mining stocks. We could see a resumption of gold mining in the Sierra Nevada foothills at the rate things are going.
marker
No, they pay the premium price as well. The gubment mint is doing pretty well these days.
Well, Rosanne Barr already told us that George Bush stole all the country’s money, looks like he got the gold too...
Some of you guys are borderline paranoid — maybe even on the wrong side of the border.
The gold bullion coins are sold at very small margin. Furthermore, if you do not approve of the government coins like the American Eagle, you can get foreign coins easily (from S. Africa, Canada, Austria, and even China). If you trust no governments, you can buy gold bars which are privately made. You will find that the price per mass of Au is about the same.
There are some coins which are “reinforced” with small amounts of alloy to make the coin durable. The American Eagle is an example. Then there are others which are very, very pure gold, like the Buffalo. You can take your choice, and either way you are buying gold. The only difference is that if you must correct your calculations if you weigh the alloy coins, because they are not pure gold.
The pure (.999) gold coins are very soft, and scratch easily. I like the American Eagle, because I can handle the coins without fear of messing up the appearance, and this makes it easier to take them out hand admire them. It increases the “gloat value.” But you can take your choice.
As an additional thought: Neither gold, nor anything else will give you absolute protection against a socio-economic meltdown. Gold is a hedge against inflation, but when you sell gold, if you get a net gain, it is taxable — like anything else, and even if the gain is merely do to inflation. In this way capital gains taxes, during an inflationary period, rob capital from the public, and destroy it through government spending. It is the equivalent of burning down factories, ultimately; or being in a major war. No one escapes, not even farmers who grow their own food, or survivalists hiding in the mountains.
To think that some of us will make it through a total catastrophe is probably a false expectation.
You can’t. The mint sells directly to the public on the “proof” versions but they cost quite a bit more over the metal price. For regular coins you would buy from a local coin dealer or through online sales.
No, regardless of the weight all the major issue coins contain 1 ounce troy and are thus priced very closely.
If things are apocalypticly bad, buy lead.
My observation is that premiums on gold coins have risen in the last month. I say this from looking at gold coin and silver coin/bar prices at APMEX every few days. Silver premiums also up w posters at forums complaining about this
I’m investing in lead.
And installing a well with a hand pump.
Where I live, gold will be worthless, water will be priceless.
It's when they keep changing the tungsten content in the gold coin design, that I get concerned.
The US Government has been known to confiscate its citizens’ private gold and make it a crime to own gold. It did as much in 1934. It then wasn’t legal to own gold until the 1960s, I believe. Another reason some will prefer lead.
"The Feral Government" has an evocative ring to it, doesn't it?
Cheers!
If things are apocalypticly bad, buy lead.
If things go down from *there*...bye-bye!
Cheers!
I wonder if the real truth is, that the US is running out of Gold supplies ? or did we sell most of our Gold to China ?
Alas, the TRUE reason there is no gold left...
They pay spot price plus shipping.
L
“gold mining in the Sierra Nevada foothills at the rate things are going.”
Not likely with the enviornmental rules in place at this time. A small time miner can’t even run a Dredge or High Banker in any river in California. See
Water is a most important tool in Gold mining and the current water problems in California will likely set back any mining ventures.
Thank you for writing that. I've been saying the same thing that if we go to a depression that gold won't mean a hell of lot. Gold will devalue and the loaf of bread will go up. The trick is never let us go any further down the "broke" trail. That means get back to conservative thinking and get jobs going again.
For what it's worth, the "American Eagles" are 22k, while the "Buffalo" are 24k. However, if you check, you'll see that the "American Eagles" weigh slightly more than the "Buffalos," so you're still getting one troy ounce of pure gold. According to the US Mint, the weight of gold in an American Eagle is 31.1035 grams, but the total weight of the coin is 33.930 grams.
But as you stated, 24k gold is very soft, and scratches easily, which is why the AE is an alloy.
Mark
They will get my lead before my gold.
The feral affirmative action flunkies of the Federal government. Non affirmative action ones too...the generic lard butts
No the Feds are just dragging...They are not liking average Joes being so enthusiastic about gold because it makes their paper/plastic/electric currency look ephemeral and weak. The Feds run a mint that makes money. And they don't have the brains to order enough blanks ahead of time to make the gold coins? Same thing happened last year
The Federales will claim there is a shortage of gold blanks same as they did before
I never hear of a shortage of five dollar bills or dimes....because they plan ahead for those items
Will they have tungsten fillers?
Can someone explain why gold is valuable in a crisis? Let’s say the world goes to crap and I have a house and some extra food. Why should I sell you my extra food for gold? What would I do with the gold? I might give you my extra food for your carpentry skills or for your gun, but your gold? Why?
Can someone explain why gold is valuable in a crisis? Let’s say the world goes to crap and I have a house and some extra food. Why should I sell you my extra food for gold? What would I do with the gold? I might give you my extra food for your carpentry skills or for your gun, but your gold? Why?
Moreover, that gold will help your SURPLUS wealth survive the crisis.
Don’t have SURPLUS food? Then buy more food until you do, and hold off on gold.
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