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 America’s ballooning debt.
The US Mint’s 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.
“You’ve 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 gold’s role as the favoured investment of disenchanted Americans. The political gridlock in Washington and the prospect of further quantitative easing when the Federal Reserve’s “operation twist” expires at the end of this year have fuelled demand for precious metals among small investors.
“They don’t 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. They’re 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 metal’s lacklustre performance.
“The institutional investors cut back and are more on the
(Excerpt) Read more at ft.com ...
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?
Regards,
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.
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.