Bullion sales in the U.S. are the lowest they have been in many years. As mentioned in previous emails, this is creating some very good discounts on a variety of gold, silver and even platinum coins.
It seems rather ridiculous that the “jobs” market would be what investors in the U.S. are watching. Gold moves with these numbers even as, so-called experts debate the possibility of future rate hikes this year. YES, the dollar will affect the price of gold. Dollar down- Gold up and vice versa.
In the mean time the rest of the world is worried about Iran-U.S. relations, currency controls and general instability in the Middle East.
To prove the point, consider the Egyptian billionaire who is putting nearly $3 BILLION into gold.
Gold demand in the Persian Gulf countries is up to over 9 tons in this year’s first quarter. China continues to trade dollars for gold and demand in Asian countries continues unabated.
So, while there may be bargains in the U.S. market, it could change overnight. In any case, the discounts seen today on coins such as Proof Gold Eagles as well as the regular issue Gold, Silver and Platinum Eagles will not last. I have seen this same thing several times in the past. In some cases, the premiums drop, as they have recently, and other times they are unusually high. Premiums typically correct as demand increases or decreases.
For example, current premiums on 1 oz U.S. Silver Eagles are nearly half of what has been normal for decades. Currently they trade for around $18.75 a coin with spot silver at over $16.75. When demand was high several years ago and silver spot price was $14.50 the premiums soared, and a Silver Eagle was selling for over $20 a coin. The premium is almost as important as the spot price. That is why, I also concentrate on watching premiums. Buy when premiums are unusually low and you can increase profits tremendously when demand changes.5/11/2018