February 2022 - Week 4 Edition
Gold is over $1900!
Gold is over $1,900 for the first time in eight months due the anticipated war between Russia and Ukraine. Gold spiked to $1,912 Monday night. The last time gold closed above $1,900 was June 2, 2021, and the last time gold closed above $1,910 was January 7, 2021, so we are close to a 13-1/2 month high. The stock market fell sharply Tuesday but rallied toward the end, with the Dow falling 482 points.
I Met Texas Governor Greg Abbott
Last week, I had a chance to meet Texas Governor Greg Abbott, once again. When he was Attorney General for Texas, I worked with him on Consumer Alerts to protect gold and silver coin customers against fraud and counterfeit coins, and I also worked with Texas Attorney General Ken Paxton on similar issues involving consumer protection. It was a pleasure catching up with the governor again in person.
The Difference Between “Sight-seen” vs. “Sight-unseen” Coins Can Be Great
It’s important to understand that any coin price guide is forced to make generalizations about prices within a certain coin’s date, type and grade, but not all coins within those categories are equal – not by a long shot, sometimes. There are differences in strike and toning, for instance, that call out the unique beauty of a coin. That’s why it is important to actually look at each coin in the rare and antique category to make sure a coin is not borderline for the grade before we offer it to our clients.
Many coin companies sell just any old coin in the grade as a “sight-unseen” coin within that grade. They are not being fraudulent when they do this. The coin is an honestly graded coin by a major grading service, but it has not been closely eyeballed by a trained numismatist to make sure it is a low-end specimen within the grade. By contrast, all the rare coins and antique coins that we accept from our distributors are reviewed by me or Team Mike numismatists. We have seen and approved each coin for eye appeal and quality within the grade. We look for good luster, striking details and minimal bag marks.
For two decades, I taught courses on grading and authentication at the American Numismatic Association (ANA), and I also graded coins at the two leading grading services. This means that your Team Mike advantage is that you have someone reviewing the coins you buy who has respected expertise in grading and evaluating the coins you are receiving. I have received unprecedent recognition over the last 40 years, and in just the past year as 2021 ANA Dealer of the Year. I also received the Al Kreuzer Memorial Award Medal for “Outstanding contributions in the efforts to combat counterfeit coins and currency” from the National Coin and Bullion Association (NCBA). Recently, I appraised the collection of a local church pastor and unfortunately his entire collection was fake, probably made in China. He should have dealt with the Team Mike experts.
So, when buying coins, make sure your dealer has been recognized as an expert or you could be paying sight-seen prices for sight-unseen coins and possibly get counterfeit coins in counterfeit holders. This could make a big difference in the price you receive for your coins if, and when, you sell them in the future. Remember, if you see prices a little lower from a competitor for the “same” coin in the “same” grade, it might not be the same quality of coin. It might be a sight-unseen coin, not our “sight-seen” coins.
If the Fed Raises Rates “Too Many Times” (as in 2018) – Gold Could Soar Again
In recent editions, we have pointed out that gold has risen during the Fed’s last three rate-rising cycles. We can now bring that story up to the last year the Fed raised rates, in 2018, with the market reaction.
This year, I see gold reaching $2,200 and Goldman Sachs sees gold rising to $2,150. They also see the Fed raising interest rates SEVEN TIMES this year, from 0.25% to about 2.0%, so they know that gold can rise when rates rise, but history shows that when the Fed raises rates too far, gold can soar while stocks collapse. In 2018, the Fed’s fourth and final Fed Funds rate increase came on December 19, 2018, and it sent the stock market down rapidly, while supercharging the precious metals. Gold rose from $1,246 the day before the rate increase of December 19, gaining $35 per ounce (+2.8%) to $1,281 by year’s end, while stocks fell.
This could happen again this year, too, if the Fed went too far and raised interest rates four or more times.
Get to Know the “Team Mike” Professionals at Universal Coin & Bullion
Working with Dr. Mike Fuljenz, America’s Gold Expert®
Forest Hamilton
Universal Coin & Bullion Assistant Director
Forest Hamilton, an Assistant Director at Universal Coin & Bullion, has over 22 years in the numismatic industry and has worked with Universal Coin & Bullion for 14 years.
Forest and the love of his life, Stormy, have three beautiful daughters and he enjoys spending as much time as possible with his family. He has coached his daughters’ soccer teams from an early age and loves watching their dance and piano recitals. Fishing with his dad and hiking with his mom in Washington and Oregon are two of his favorite things.
He has coached youth soccer and baseball for many years, is an influence coach for Lamar University, is on the board of Beaumont Boys Haven and Pathway Church and truly enjoys being a consistently featured speaker for Fathers in the Field Ministry.
Forest is proud that UCB has maintained an A+ rating with Better Business Bureau and that the company delivers award-winning industry materials to its customers.
He is a three-time Amazon.com Best-Selling Author and an award-winning speaker. He is also one of America’s numismatic experts and has been featured in USA Today, CNBC, Yahoo! Finance and Market Watch Online, among others. Forest was also on ABC’s Shark Tank.
Forest’s favorite coin is the $2 ½ Indian Head Quarter Eagle that was minted from 1908-1929. He loves that it has a fully incused design, is an extremely completable set with only 15 coins total and is one of the most consistent cyclical investment coins in U.S. history. He said he appreciates their beauty, unique design, history and that many of them are included in UCB’s innovative 20/20 program. Forest also enjoys helping clients easily diversify their IRAs with the popular Gold American Eagle.
Learn more from Forest by watching videos featuring him here.
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