Silver Bullion and American Eagles- Supplies are back!

The metal with the most momentum in terms of investor interest is silver. Silver bullion demand in the third quarter exploded, with sales of Silver Eagles hitting a record 14.3 million ounces. That number would have been even bigger if the dysfunctional U.S. Mint hadn’t arbitrarily limited supplies of coins going out to dealers. The market for physical silver remains tight, with supplies of most bullion products in short supply and premiums elevated.

Silver spot prices haven’t been affected – at least not yet. The white metal spent most of the third quarter trading within a $14.50 – $15.50 range.

However, the weekly silver chart now shows an interesting wedge pattern developing. Silver prices briefly touched the bottom of the wedge last week before closing near the top. A solid weekly close above $15.50 would represent a bullish upside breakout, while a decisive break below $14.50 would carry bearish near-term implications.

999.9 gold bullion, three bars

Gold prices rebounded from a two-week low on Monday, closing higher for the first time in four sessions.

Gold for December delivery rose $3.40, or 0.3%, to settle at $1,166.20 an ounce on the Comex division of the New York Mercantile Exchange.

“The weaker dollar is giving a bit of support to the gold market,” Phil Streible, a senior market strategist at RJO Futures in Chicago, said in a telephone interview according to Bloomberg News. “It’s widely anticipated that the FOMC won’t do anything this week because of too much global weakness.”

The U.S. dollar weakened after a Commerce Department report showed new home sales tumbled 11.5% in September.

The yellow metal ranged from a low of $1,162 to a high of $1,168.30. Gold declined 1.7% last week, its first weekly loss in three weeks. The precious metal on Friday ended at its lowest price since Oct. 9.

Elsewhere, silver for December delivery tacked on 8 cents, or 0.5%, to close at $15.91 an ounce. Silver prices traded from $15.77 to $15.98. Last week, silver tumbled 1.8% after three straight weekly gains of 1.9%; 3.6%; and 1%.

In other precious metals futures:

  • January platinum lost $4.20, or 0.4%, to $997.50 an ounce, ranging from $987.90 to $1,004.90.
  • Palladium for December delivery fell $9.95, or 1.4%, to $683.90 an ounce, trading between $678.05 and $694.50.

Last week, platinum fell 2.2% and palladium shed 0.8%.

London Precious Metals Prices

Earlier fixed London gold and silver prices were mixed. In comparing their prices from Friday PM to Monday PM:

  • Gold added $5.15, or 0.4%, to $1,166.40 an ounce.
  • Silver declined 12 cents, or 0.8%, to $15.86 an ounce.

LBMA platinum and palladium prices are available on the LBMA’s website with a delay of midnight.

Last week, losses combined to 1.7% for gold, 0.4% for silver, 0.1% for platinum and 0.6% for palladium.

US Mint Bullion Coin Sales in October

United States Mint bullion sales were unchanged Monday as of 4:14 PM ET.

In related news, the U.S. Mint this week limited Silver Eagle sales to 1,043,500. The agency has restricted weekly sales of bullion American Silver Eagles since temporarily running out of them in early July.

Below is a listing of United States Mint bullion products with the number of coins sold during varying periods. Products with an asterisk (*) are no longer available.

US Mint Bullion Sales (# of coins)
Monday Sales Last Week Sept Sales Oct Sales YTD Sales
$50 American Eagle 1 Oz Gold Coins 0 2,500 98,500 22,500 542,500
$25 American Eagle 1/2 Oz Gold Coins 0 1,000 9,000 3,000 66,000
$10 American Eagle 1/4 Oz Gold Coins 0 0 20,000 4,000 146,000
$5 American Eagle 1/10 Oz Gold Coins 0 10,000 175,000 45,000 875,000
$50 American Buffalo 1 Oz Gold Coins 0 1,500 22,000 10,000 180,500
$1 American Eagle 1 Oz Silver Coins 0 926,500 3,804,500 2,931,500 38,986,000
2015 Homestead 5 Oz Silver Coins* 35,000
2015 Kisatchie 5 Oz Silver Coins* 42,000
2015 Blue Ridge Parkway 5 Oz Silver Coins* 45,000
2015 Bombay Hook 5 Oz Silver Coins* 45,000 45,000

Source: http://www.coinnews.net/2015/10/26/gold-logs-first-gain-in-four-sessions/

This can sum it all up for you.

 




Summary

The Federal Reserve is about to raise the discount rate and the dollar will probably fall.

As the dollar falls, silver and gold will rally.

Silver tends to rally at greater magnitudes than gold and the gold to silver ratio is at a multi-year high.

The best reward per unit of risk will probably be found by shorting gold and buying silver.

The past 3 years have been quite brutal for holders of silver, with the average position down around 50%. In fact, over the past 4 years, silver has only increased on a year-over-year basis in 5 months!

With such a merciless sell-off many are doubtless tossing in the towel or considering exiting all remaining positions. While this is totally understandable, I believe selling now is a mistake. In fact, I think now is an excellent time to buy silver.

Recent changes in Federal Reserve policy indicate that in the very near future, the discount rate will be increased. The discount rate is the bedrock rate of the United States economy against which nearly all other interest rates are evaluated. When the Federal Reserve raises interest rates, ramifications are felt across the entire economy. Specifically, for the past 42 years, every timethe Federal Reserve has raised the discount rate following a lengthy period of low stability, the dollar falls at some point by 10-12% over the next 2 years.

The economic significance of this change is profound. As the dollar weakens, basic economic theory teaches that it will take a greater amount of dollars to purchase the same amount of silver – leading to a higher price of silver. I only tend to believe economic theory if it can be quantified and proven through data.

 

 

As you can see, economic theory is substantiated by reality – as the dollar falls, silver tends to rise. Over the past 42 years, every single time that the Federal Reserve has increased the discount rate, the dollar has declined by 10-12%. Historically, when the dollar falls by 10-12%, silver has risen by 40-60%. In other words, the data strongly suggests that it is time to buy silver.

The Gold Trade

Not only does the dollar suggest that silver is in for a strong gain, but also, the gold-to-silver ratio strongly suggests that we are at the end of a strong gold, weak silver cycle. You see, from a financial standpoint, gold and silver are very, very similar. Don’t believe me? Here’s the data.

Gold and silver returns have historically exhibited fairly strong correlation. In other words, if gold increases over a time period, silver increases as well – but only in direction, not necessarily in magnitude.

As you can see from the chart above, silver tends to experience stronger moves than gold, even though the direction is almost identical. I believe this is due to the heightened volatility associated with a less liquid instrument. A fund selling $1 billion of gold futures will not cause the same impact as selling $1 billion of silver futures – silver will move substantially more.

Since silver and gold are quite similar from a financial standpoint, we are afforded the ability to trade one instrument against the other.

We are at the cusp of an excellent investing opportunity. Over the past 4 years, silver has witnessed a 50% sell-off while gold has only experienced a sell-off around 30%. This has driven the ratio of the gold price to silver price to the highest level since 2008. Since gold and silver are similar financial assets, their prices will eventually revert to a mean. In other words, the current ratio of gold price to silver price is too high and will tighten. As you can see in the chart above, this type of opportunity only occurs every 5 years on average. And in each of the previous occasions, silver has historically rallied against gold over the next 3-4 years. For an investor seeking the maximum reward for risk taken, I believe shorting gold (NYSEARCA:GLD) and buying silver (NYSEARCA:SLV) represents an excellent investment.

Don’t get me wrong, I’m also bullish gold. I believe anyone purchasing either gold or silver is due for strong returns over the next 12-24 months. However, if you want to get the best Sharpe ratio, short gold, long silver is an excellent value proposition. Silver historically moves at greater magnitudes than gold, so as both gold and silver strengthen, the ratio of gold to silver will tighten.

Whichever way you decide to play it, the short of it is this – the Federal Reserve is increasing rates very soon. When rates rise, the dollar has fallen every single time. When the dollar falls, gold and silver rise.

 

From <http://seekingalpha.com/article/3482566-a-golden-opportunity-in-silver?li_source=LI&li_medium=liftigniter-widget>

 

 

 

 

 

 

From <http://seekingalpha.com/article/3482566-a-golden-opportunity-in-silver?li_source=LI&li_medium=liftigniter-widget>

 

 

 

Silver Premiums Have Fallen, but the Short-Term Outlook Is Uncertain

Silver Premiums Have Fallen, but the Short-Term Outlook Is Uncertain
With silver prices rising almost 10%, retail buying of physical silver has lessened over the past three weeks – down from the frenetic pace over the past 4 months. That’s allowed premiums on many products to fall toward normal levels. Production backlogs and delivery delays have also been dissipating.

Ask premiums for the Maple Leaf, American Eagle, and Pre-1965 90% silver U.S. coins – the products that saw the sharpest hikes through the summer – are now leading the way down. The respite will help mints and refiners catch up. Dealers are taking the opportunity to replenish inventories.

2015-dated American Eagle silver bullion coins

More American Eagle silver bullions coins are available this week than in the previous two weeks, although that may not matter to buyers who haven’t ordered as many as they could since earlier this month.

The United States Mint has limited sales of American Silver Eagles since their return after temporarily selling out in July. This week’s allocation level advanced 4.4% to 1,043,500 coins. Last week’s amount slipped 3% to 970,000 coins from the prior week’s supply of 1 million coins.

Weekly inventories through most of the summer sold within a few days of their release. That hasn’t been the case for two straight weeks with a combined 113,500 coins left on the table.

The U.S. Mint does not sell bullion Silver Eagles straight to the public. They are sold through a network of authorized purchasers. AP’s consist of major coin and precious metals dealers, brokerage companies, and other participating financial intermediaries. They must pay $2 more than the spot value of each coin they buy.

Sales of the 1-ounce, .999 fine silver coins at 38,986,000 for the year are on track for an annual record, up 8.1% through the same time in 2014. Last year when sales ended at a record totaling 44,006,000, the coins through Oct. 23, 2014 posted sales of 36,066,000.

Source: http://www.coinnews.net/2015/10/26/us-mint-silver-eagle-allocation-tops-1-million/

2016 Maple of Canopy Kaleidoscope of Color Gold Coin Released

Just in! An interesting read for the avid collector! The 2016 Maple of Canopy coin is beautiful! Designed by Emily Damstra. It is a limited mintage! It It is very attractive to collectors, although its price is ………………. Each coin has the following Mint-provided specifications……………………………

A new maple leaf-inspired coin, struck in 2 ounces of 99.99% pure gold to proof quality, features a colorful design of a large maple tree in autumn. The issue marks the first maple canopy gold coin from the Royal Canadian Mint. Silver editions launched in the past, and all of them have sold out.

2016 Maple of Canopy Kaleidoscope of Color 2 oz Gold Coin

2016 Maple of Canopy Kaleidoscope of Color 2 oz Gold Coin – obverse and reverse

The coin’s distinct imagery and extremely limited mintage of 150 make it very attractive for collectors, although its price is not for the faint hearted.

Designed by Emily Damstra, the reverse shows the trunk and branches of a maple tree from the viewpoint of someone looking up.

“There’s a towering sense of height as the viewer’s gaze sweeps along the trunk of the mighty maple tree, moving upward from the base over the intricately engraved fissures and ridges, to the branches that seem to spread out overhead and across the sky,” the Royal Canadian Mint describes.

“There, a lush canopy of fall foliage blazes brightly with rich hues of red, orange and yellow that have been painstakingly applied over the engraving to recreate nature’s autumnal palette.”

Inscriptions on the trunk of the gold coin read CANADA, 250 DOLLARS, and the year 2016.

2016 Maple of Canopy Kaleidoscope of Color 2 oz Gold Coin, Reverse

Reverse of the gold coin

The obverse offers Susan Blunt’s effigy of the Queen with surrounding inscriptions of ELIZABETH II and D G REGINA.

Each coin has the following Mint-provided specifications:

  • Mintage: 150
  • Composition: 99.99% pure gold
  • Finish: proof
  • Weight (g): 62.34
  • Diameter (mm): 42
  • Edge: serrated
  • Certificate: serialized
  • Face value: 250 dollars

Ordering

Priced at CAD $4,899.95, or about US $3,730, order the 2016 Maple of Canopy Kaleidoscope of Color Gold Proof Coin by visiting the Royal Canadian Mint’s website at www.mint.ca or by following the affiliate link located hereicon.

Source: http://www.coinnews.net/2015/10/23/2016-maple-of-canopy-kaleidoscope-of-color-gold-coin-released/

Morgan Dollars

Morgan Dollars —the most popular silver dollar coins?

Morgan dollars that were minted from the years 1878 through 1904 (plus, later once again in 1921) just might be the most widely collected of all U.S. silver coins. Morgan dollars may even be more sought-after than the Peace dollar or Walking Liberty Half Dollar.

There are so many Morgan dollars available to collect, that Morgan appeals to a collector’s “hunt and gather” instinct. Morgan dollars are collected in a variety of ways. Most coin collectors who collect silver dollars like to collect Morgan dollars the traditional way: by obtaining one of each date and mintmark combination, which is not easy. Older collectors can remember that in the 1950s silver dollars were available at banks but too expensive to collect. A simpler approach that would be far less expensive would be to put together a collection that consists of the least expensive example of each of the different years of Morgan dollars. By doing this, you would have a complete year set without the focus on all the different mint marks of Morgan Dollars.

What are the varieties of Morgan Dollars that are most popular? One coin collecting guide book lists five different varieties of the Philadelphia-minted 1878 and another five varieties of the 1880-CC, which is the Carson City mint that so many collectors love to own coins from.

In fact, a third way to collect Morgan dollars would be to focus on Morgan dollars from the Carson City Mint. This type of coin collection would be made up of only 13 different coins: the mint years 1878 -1885 and 1889-1893. The only downside of collecting Morgan Dollars this way is that four of the dates (1879-CC, 1889-CC, 1892-CC, 1893-CC) are expensive to own in all the grades. Even the “common” dates of Carson City Morgan dollars are relatively expensive because of high demand. The good news is that this collection would feature the 1878-CC, with a mintage of 2,212,000 (the second highest mintage of the 13 dates, following only the 1890-CC (2,309,041).

Are you interested in starting a collection of Morgan dollars? If so, some of the finest and most collectible Morgan Dollars can be found online from from multiple sources, our goal is to take the guess work out of wondering if your getting the best price and the best selection. Our partners have weighed in and we have done do diligence. Golden State Mint will display some of the best selection and pricing we have found.

Thanks for stepping by….

Krugerrand Gold Coins – 5 Benefits Of Purchasing Gold Krugerrands Vs. Other Bullion Coins

 

South Africa Gold Krugerrand 1 Ounce (Random Year)
SUID-AFRIKA-SOUTH AFRICA

The Gold South African Krugerrand has been a Gold Bullion investor favorite since they were introduced in the 1970s. These coins come in a variety of sizes and are generally not collected by date. They are traded on a daily basis as a standard of the Gold Bullion market.

Krugerrand gold coins are the oldest of all modern-day gold bullion coins. Introduced in 1967 by the South African government, its level of popularity became so fantastic that it resulted in the mintage of many common gold bullion coins such as the Canadian Gold Maple Leaf and the American Gold Eagle.

I covered the Krugerrand’s basic history and information in my previous article entitled, Krugerrand Gold Coins – The First Modern Gold Bullion Coins. I also covered some interesting facts and trivia about the coin in a follow-up article, entitled, Krugerrand Gold Coins – 10 Interesting Facts. If you’re interested in reading them, just do a search on Google by title!

In this article, I’d like to talk about the advantages of buying Krugerrand gold coins versus other modern gold bullion coins.

1. High Durability

The 22k Krugerrand contains a gold alloy combination of 91.67% gold and 8.33% copper. The inclusion of copper makes them more durable than other 24k modern gold bullion coins. The coin is highly resistant to scratches, dents, and nicks!

2. Low Price

The Krugerrand generally has the lowest premium over the spot price of gold. At the time this article was written, the coin was trading at $ 9.00 over spot compared with $ 16.00 for the Canadian gold maple leaf, $ 34.00 over spot for the American Gold Eagle, and $ 50.00 over spot for the gold Buffalo!

3. Instant Liquidity

Because the Krugerrand gold coin isso well-known, it is super easy to buy and sell them both locally and internationally.

4. Easy To Store

Like most gold bullion coins, the compact size of the Krugerrand makes it convenient to store and transport. Most Krugerrands are packed in three inch plastic tubes that fit nicely inside home safes or safety deposit boxes in banks.

5. Better Than Bars

While it’s true that the premium on gold bars is generally lower than that of gold coins, unlike Krugerrand gold coins, it’s a pain to store and transport them. Plus, most gold bars must be assayed when sold, an additional cost that you don’t have to worry about when selling the Krugerrand!

Whether you are just starting to purchase gold bullion coins or are looking to add to your collection, I think you’ll agree that the gold Krugerrand is not only a great deal but a high-quality bullion coin that should be the cornerstone of any investor’s portfolio. In my next article, I’m going to take a look at how to buy Krugerrand gold coins without getting ripped off!

 

The best I have seen in a long time, price has got to update soon, for now the Krugerrand has a great offering at the Golden Eagle a partner we can count on.

Thanks

Mike

 

Morgan Dollar Values

5049791466_67f73ccab4_morgan-dollarThe Morgan Dollar was a dollar coin that was minted from 1878 to 1921. This was the first standard silver dollar minted since the previous design of The Seated Liberty Dollar. The Seated Liberty Dollar was stopped being made due to the Fourth Coinage Act. This act ended the free coining of silver. The Morgan Dollar is named for its designer George T Morgan. Mr. Morgan was the United States Mint Assistant Engraver.

The Morgan Dollar profiles a portrait portraying Liberty while the other side details an eagle with outstretched wings. There were actually two die that were cast for this coin. The first one had eight eagle tail feathers on it, but after some research, it was realized that it should have only had seven tail feathers on it. This unfortunately hasn’t made either mint more valuable than the other. The average uncirculated coin price will vary from approximately $ 41.00 to $ 100,000. The circulated coins range from approximately $ 24.00 to $ 25,000.

There are many factors that will determine the value of your coin. If it is used or circulated, this will lessen its worth. However, an uncirculated coin will have a higher value. All of the coins are made from 90% silver and 10% copper and they contain exactly 0.77344 troy ounces of silver. The average uncirculated Morgan Dollar has increased almost quadruple since 1970. Each coin has $ 20.88 worth of silver that it has been made with.

The Morgan D Dollars were produced with five mints. Philadelphia, which had no mark on it, Carson City Nevada which has “CC” mark on it, New Orleans has an “O” mark, Denver has “D” mark and San Francisco that has an “S” mark on it. The mint mark is on the back of the coin just below the wreath. The value that you will receive for your coin will vary and depend upon the condition and mint (if there is one) of your dollar.

One way to ensure that you get top pay for your coins is to keep them organized and in protective sheaths. Educating yourself on the coins will help protect your interests also. You never want to clean a coin. This will DE-value it and lessen the sale value for a collector. Learn how the coin market works. Coin collecting is a hobby that thousands of individuals love to do each day.

If  you looking for more information regarding these timeless coins- Morgan Silver Dollars

 

Canadian Silver 1 oz Great Horned Owl 2015 (Birds of Prey Series)

 

The final installment to the Royal Canadian Mint’s Birds of Prey series has finally arrived! The Great Horned Owl is the final Birds of Prey coin to complete the popular series. Earning a solid reputation of producing high quality bullion products, the Royal Canadian Mint has held the lead when compared to other mints. Not only do they mint products that are dependable but they also go over leaps and bounds to protect their brand from being counterfeited. The Royal Canadian Mint was established over one hundred years ago and has only improved their standards over time. They are also responsible for minting other countries’ medals, currency, and precious metals coins. If you become a valued customer to this outstanding mint, they also offer refinery and assay services. To say this famous mint “does it all” is an understatement.

The Birds of Prey series is just one of many other silver bullion series the Royal Canadian Mint has started. The Wildlife series, the silver Maple Leaf series, and the DC Comic series are among the long list of successful series by RCM. The Great Horned Owl joins its brethren in the collection: the Bald Eagle, Peregrine Falcon, and the Red-Tailed Hawk, to complete the Birds of Prey set. This silver bullion coin weighs approximately one ounce of pure .999 silver, is in brilliant uncirculated condition, and is available in tubes of 25. We get to see up close the Owl honing in on some unsuspecting prey. The Owl’s wings are widespread across the reverse, with the coin’s purity and weight inscribed below the hunter. As per usual, Her Majesty Queen Elizabeth II is magnificently portrayed on the obverse, along with the coin’s date of mintage. Whether if you are a bird lover or just a coin collector, the Birds of Prey series is the perfect accompaniment to any collection! Exclusive at Golden Eagle Coins