Inflation Continues to Soar – Gold Prices Will Follow in Time

Last Friday, the Labor Department announced that the Producer Price Index (PPI) surged another 0.7% in August, higher than the economists’ consensus estimate of a 0.6% increase. In the past 12 months, the PPI and core PPI have risen by 8.3% and 6.3%, respectively, the fastest pace in several years. The index for processed goods rose 1% in August and 23% year-over-year, the highest increase since February 1975.

Gold’s Track Record Shines

Despite the slow movement of precious metals this year, gold rose 22% last year and silver doubled that percentage with a 44% gain. Since 2000, gold is up over 500%, more than doubling the major stock market indexes. For the past 50 years – since the dollar was set free from gold’s backing in August 1971, gold has risen by an average of 10.8% per year. Gold exceeded the gains in the major stock market indexes and gaining over 50-fold to the dollar. That means the dollar has lost 98% of its purchasing power vs. gold.

Not a bad track record over two years, 20 years, 50 years, 100 years or more.

Month-End “Mint & Market Review” for August

Sales of American Silver Eagle and American Gold Eagle coins picked up in August with 3.93 million American Silver Eagles sold (vs. 3.1 million in July), and 136,000 ounces of American Gold Eagles sold in August vs. 58,500 in July.

Month-End “Mint & Market Review” for August

Sales of American Silver Eagle and American Gold Eagle coins picked up in August with 3.93 million American Silver Eagles sold (vs. 3.1 million in July), and 136,000 ounces of American Gold Eagles sold in August vs. 58,500 in July.

Gold Rose Back Above $1,800

Gold rose back above $1,800 early Monday as the dollar retreated over the weekend and concerns grew that the COVID delta variant could spread more widely, slowing the U.S. and global economic recovery. A slowing economy raises the odds that the Federal Reserve will leave interest rates near zero for a longer time, boosting gold’s outlook. We may learn more about the dollar and interest rates when the Fed holds a virtual meeting this weekend. Also, the dollar was up 4% year-to-date last Thursday before falling. Gold tends to move in a mirror image to the dollar with Gold rising as the dollar falls.

Gold Rose Back Above $1,800

Gold rose back above $1,800 early Monday as the dollar retreated over the weekend and concerns grew that the COVID delta variant could spread more widely, slowing the U.S. and global economic recovery. A slowing economy raises the odds that the Federal Reserve will leave interest rates near zero for a longer time, boosting gold’s outlook. We may learn more about the dollar and interest rates when the Fed holds a virtual meeting this weekend. Also, the dollar was up 4% year-to-date last Thursday before falling. Gold tends to move in a mirror image to the dollar with Gold rising as the dollar falls.

Gold Rose Back Above $1,800

Gold rose back above $1,800 early Monday as the dollar retreated over the weekend and concerns grew that the COVID delta variant could spread more widely, slowing the U.S. and global economic recovery. A slowing economy raises the odds that the Federal Reserve will leave interest rates near zero for a longer time, boosting gold’s outlook. We may learn more about the dollar and interest rates when the Fed holds a virtual meeting this weekend. Also, the dollar was up 4% year-to-date last Thursday before falling. Gold tends to move in a mirror image to the dollar with Gold rising as the dollar falls.

Gold Rose Back Above $1,800

Gold rose back above $1,800 early Monday as the dollar retreated over the weekend and concerns grew that the COVID delta variant could spread more widely, slowing the U.S. and global economic recovery. A slowing economy raises the odds that the Federal Reserve will leave interest rates near zero for a longer time, boosting gold’s outlook. We may learn more about the dollar and interest rates when the Fed holds a virtual meeting this weekend. Also, the dollar was up 4% year-to-date last Thursday before falling. Gold tends to move in a mirror image to the dollar with Gold rising as the dollar falls.

Gold Rises Again

Gold corrected itself on Friday, August 6^th with a strong jobs report, but then recovered even stronger in the following week. A strong jobs report led some nervous traders to fear the Federal Reserve might raise interest rates or stop Quantitative Easing (QE) sooner than expected. Over the weekend, from August 7-8, gold dipped to $1,680 per ounce at one point, a four-month low. Silver also fell and hit $22.30, but both precious metals recovered the following week. Gold added back about $110 or roughly 90 percent of its losses to $1,789 on Monday morning, August 16.

Gold Rises Again

Gold corrected itself on Friday, August 6^th with a strong jobs report, but then recovered even stronger in the following week. A strong jobs report led some nervous traders to fear the Federal Reserve might raise interest rates or stop Quantitative Easing (QE) sooner than expected. Over the weekend, from August 7-8, gold dipped to $1,680 per ounce at one point, a four-month low. Silver also fell and hit $22.30, but both precious metals recovered the following week. Gold added back about $110 or roughly 90 percent of its losses to $1,789 on Monday morning, August 16.