Posted on 06/02/2022 6:37:01 PM PDT by blam
Demand for American Gold Eagles exploded in May according to the latest data from the US Mint.
The mint sold 147,000 ounces of American Gold Eagles in varying denominations totaling 200,500 coins. That was a 67% increase from March.
So far this year, the US Mint has sold 661,500 ounces of American Eagles. For the year, bullion demand in the form of Gold Eagles is up a staggering 617%. When you factor out COVID-19-related sales disruptions, bullion sales are up 400% over the 5-year average between 2015 and 2019.
A market strategist told Kitco News that the surge in demand for physical metal reflects growing investor anxiety bubbling under the surface.
Bullion sales better reflect the anxiety investors are feeling right now. When you hear economists talk about a recession, it starts to make sense why bullion sales are so strong. Gold will always be a long-term store of value.”
Peter Schiff has been saying the recession is likely already here.
I don’t think it’s going to be a mild recession. I think this recession is going to be worse than the Great Recession that started following the 2008 financial crisis.”
The mainstream doesn’t seem to have picked up on this yes, but the demand for physical gold may indicate at least some people are beginning to worry.
Institutional investors focus more on the futures market. As Peter noted in a recent video on gold’s recent performance, the mainstream still thinks the Fed is going to successfully fight inflation by raising interest rates and believes the central bank has the tools to get inflation back to 2%.
Rather than fearing inflation, they’re fearing the fight against inflation.” Schiff said. “Because how is the Fed going to fight inflation? It’s going to jack up interest rates. It’s going to have a tight monetary policy. In fact, it’s even going to start shrinking the balance sheet. It’s going to start taking money out of circulation — quantitative tightening. It’s going to reverse all of that inflation. It’s going to suck up that liquidity. And that is what is scaring investors out of buying gold and silver. They still have confidence in the Federal Reserve.”
Peter said faith in the Fed is misplaced, and he emphasized that the Fed is only pretending it’s going to fight inflation.
Because it’s also pretending the economy is strong enough to withstand the fight. It’s not. Even though the fight is inadequate to solve the inflation problem, it’s going to cause a big problem for the economy that is so levered up on debt.”
A senior commodities broker with RJO Futures told Kitco News that he doesn’t think interest rates can go too much higher because of the government’s massive twin deficits – budget and trade.
Gold futures are capped by rising interest rates, but people have been going out to buy the physical metal to have some ‘real money’ stashed away.”
I have a few. Also some 1 ounce gold Krugerrands that I bought between $35 and $40 back in the day.
A small silver coin could buy a chicken in Biblical times. A small silver coin can buy a chicken at the grocery today. Inflation-proof.
Kind of weird how someone who sells gold is saying the demand for gold is exploding...
In a shtf scenario a box of fish hooks or 9x19 would be worth more.
I see those commercials on tv all the time.
One ounce for 35-40 bucks?
I paid $250 for a Krugerrand in the mid-70s. Sold it a couple years later for
$450.
“I have a few. Also some 1 ounce gold Krugerrands that I bought between $35 and $40 back in the day.”
It was not legal in the US to buy gold coins or bullion before 1975 (unless you bought it before 1933 or you had a special license). In 1975 an ounce of gold went for $160.00. That was the spot price. A one ounce Krugerrand would have cost more. Since 1975 a one ounce Krugerrand NEVER sold for $35 or $40 on the open market.
I remember in my peak teenage coin collecting years of the early ‘70s, a St.Gaudens double eagle $20 gold coin was only $65.oo.
How I’ve wished over the years that I had bought several coins then, instead of the latest Pink Floyd or King Crimson album!
Gold was $35/Oz in 1971, but not legal to buy yet. Maybe that’s why I didn’t get any! (See previous post)
200.5K one ounce gold eagles were sold but only 147k ounces are reported by the mint?
Oops… * Varying denominations.
They make eagles in half ounce, quarter ounce, and one tenth ounce sizes - that’s why the difference.
Re read to comprehend *Varying denominations.
I would love to buy physical gold. I am struggling to justify it. Gold would have to soar $500/ounce for me to see a penny of profit.
Kitco Spot Price at this moment = $1,866.
Per APMEX, 2022 1 oz American gold eagle, $2,083 on credit card.
Sale tax my state = $193
Total = $2,276.
Assume APMEX would buy back an American Eagle for $100 below spot, or $1,766
$2,276 - $1,766 = $510.
I need gold to go to go to spot $2,400 before I see a penny of profit. I am not saying gold can’t eventually go to $3,000 - just that it is a tough sell right now when I look at getting killed on the spread.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.