Skip to comments.Sales of American Eagle gold coins soar
Posted on 12/10/2012 6:12:13 PM PST by Evil Slayer
Demand for gold coins in the US has soared since the presidential election, as small investors fret about the lack of action to address Americas ballooning debt.
The US Mints sales of American Eagles, one of the most popular gold coins, leapt 131 per cent in November, hitting their highest level in more than two years. The Royal Canadian Mint also had its strongest month of sales this year.
Terry Hanlon, president of metals at Dillon Gage, one of the largest bullion dealers in the country, said sales had risen sharply within a day or two of the election.
Youve got a lot of people who are very worried about the economy. With the election they saw that nothing was going to change, he said.
While coins are a small part of the overall gold market, the jump in sales highlights golds role as the favoured investment of disenchanted Americans. The political gridlock in Washington and the prospect of further quantitative easing when the Federal Reserves operation twist expires at the end of this year have fuelled demand for precious metals among small investors.
They dont believe in Uncle Sam any more, said the head of precious metals at a large bank.
Tobina Kahn, who runs a jewellery dealership in Chicago, said: Obama did me a favour in some ways. Now people are buying gold and jewels not because they like them but because of fear. Theyre trying to protect their wealth.
Despite the increase in coin purchases, the gold market has struggled for momentum in recent weeks. Prices last week dropped below $1,685 a troy ounce for the first time in a month and some hedge funds have begun to lose patience with the precious metals lacklustre performance.
The institutional investors cut back and are more on the
(Excerpt) Read more at ft.com ...
I’ll never understand the gold and silver markets. By now I would have thought they would be rocketing to new highs, but they just look stuck.
I get the nagging feeling those markets are being manipulated by either the fed or somebody's (America's, China's, Russia's?) government. I mean, if the Hunt brothers could do it privately, imagine what the fed, along with a complicit US government, could do? And without fear of prosecution.
Personally...I like the fact the Feds continually manipulate the price down a few bucks.....Let ‘em take it down a few hundred and see if there's any buyers....lol
I wouldn’t put it past them, that’s for sure. Particularly silver, it is incredibly undervalued, IMO.
yes, the markets had been manipulated for a few years... 2009 - 2011. almost every day you’d see gold drop in value during US market hours... and rise during Asian times. almost as if someone were selling everything they had in a big vault somewhere.... and have it bought up by the chinese
I have found this website to be a very useful source of information on the economy, gold, and silver.
It’s just a hunch but I think silver is the better deal. It’s seems more undervalued and if the SHTF, a one oz gold coin will be worth a fortune. Such a coin will be hard to spend but a one oz silver coin will be much more “spendable”. Like I said, just a hunch.
LOL.. When the dollar is worth NOTHING, silver and gold will ALWAYS be worth SOMETHING. Unless of course there’s a MASSIVE vein found along a ravine somewhere.
Not stuck long term, no. I expect metals to move upward over time.
I mean now, short term. I don’t pay as much attention to gold as I do silver. Silver has been bouncing back and forth between 32 and 34 for about a month. It just looks stuck to me. I keep expecting it to shoot up, it starts to, then plop, it falls back.
But like I said, I don’t understand the markets. :)
I’ll take Maple Leafs, thanks. When Obama is done symbols of America will be selling at a discount. Why pay a premium to Fed Gov for their symbol.
You’re right. Morgan cartwheels & `junk’ silver are universally known & will buy goods & services. `Peace’ cartwheels too, of course.
IIRC the only use of gold during hyperinflation was in Germany in 1923. Holders of gold stepped across the border to exchange their gold for hard currencies that could be spent back in the bankrupt Fatherland.
We don’t have that opportunity. Silver however will work.
Pesos, the up and coming currency.
But in a true SHTF situation they're not worth much. Just what I heard from survivors of seriously bad situations. Mostly Soviet relatives living through the joys of communism and Nazism.
People with limited ability to buy things in an indefinite emergency situation aren't going to give you much for even an ounce of gold. You need things useful on their own, not just a good store of value. A propane stove/heater, batteries, medical supplies, water purifier, cigarettes, liquor, lighters, maps, tools, ammo. These things will be worth more than their weight in gold.
Precious metals are always worth something. In a real SHTF situation they still have value. Prisoners in German concentration camps used small bits of gold to buy food from other prisoners. They are never worth nothing.
What’s better, gold or real estate?
Speaking of dumb, the word "you" is spelled y-o-u.
If you have to bug out, which is easier to carry? Gold? Real estate?
I prefer silver to gold. Before the government collapses, the possibility of converting silver without generating a 1099 is greater than converting gold.
If TSHTF, fewer commodity purveyors will be able to make change for an ounce of gold than for an ounce of silver.
Yep, stuck. No change.
8-7-2012 I bought some 90% silver Franklin and Walking Liberty Half Dollars for $2,244.86 per $100 face value.
Today the price was $2,616.65. Only up 16.56% in four months and three days. Total waste of time!
Which of those two things can a government gone crazy more easily locate and punitively tax or confiscate? Acres of land, out in the open for all to see (or discovered simply by checking public records)? Or a small cache of gold stored - who knows where?
In the 1920s the kulaks in the Soviet Union owned real estate-right up until the day that they didn't.
May I assume “you” have neither PM’s or insurance from your snide remark?
I’m referring to the last 30 days, spot silver in the 32-34 range.
Where do you buy gold and silver?
I’ve heard the ads on the radio just like everyone else and looked into Lear. It all seemed like high-pressure sales and turned me off. I came away feeling that I was about to WAY over pay.
So how’s a novis dip into gold and silver without feeling like they’re over-paying?
Take your time. Bookmark Kitco.com and look at their gold and silver spot charts. Follow them for a while until you get an idea of how the spot market acts.
Find a dealer who prices their stock in relation to spot, preferably updating in near real time. Depending on the metal and it’s popularity, the surcharge may range from 99 cents per ounce to $70 or more. Be leery of dealers who won’t put prices up on their websites. Many want their salesmen to twist your arm over the phone.
Some also push numismatic coins (which carry a much higher premium) over plain bullion. If that’s your bag, fine. Caveat Emptor.
Start out with a small order-5 oz. of Silver Eagles, for example, so you can learn the ropes of payment and delivery and the dealer can establish you as a good customer.
My first wife’s chiropractor’s mother-in-law has had good luck with Gainesville Coins.
I buy mine from APMEX.