Gold is Making Gains

Gold has traded in a narrow range above $1,750 but this week it moved up to $1,794, despite the rising U.S. Dollar. I believe Gold is awaiting a clear resolution of several financial developments, such as the two massive spending bills in Congress and the Fed’s decision to taper their quantitative easing (QE) and perhaps raise interest rates.

Gold Trending Upward

Gold has been ratcheting its way higher over the past few days. First, last Thursday, September 30, gold shot up from $1,720 to $1,760 per ounce in four hours of morning trading before consolidating its gains over the weekend, slipping to $1,750.

Rare Gold Coins Have Risen in 2021, Despite Gold’s Lackluster Performance

Despite gold’s weak performance in 2021, a leading dealer price guide reflects rising bids for selected rare gold coins between March and September of this year. 

Rare Gold Coins Have Risen in 2021, Despite Gold’s Lackluster Performance

Despite gold’s weak performance in 2021, a leading dealer price guide reflects rising bids for selected rare gold coins between March and September of this year. 

Bitcoin is Down $10,000 (-20%) in Two Weeks

Barron’s had an interesting cover article last weekend: “The Coming War Over Money.” The article also turned out to be prophetic. The magazine reached the news racks, mailboxes and websites Saturday morning, September 18, when Bitcoin traded for over $48,500.  Twelve days earlier, the popular crypto-currency peaked at $52,656 on Labor Day, September 6. Now, Bitcoin trades around $41,200, over 20% off in two weeks.

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.

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.