GOLD 00.00 1.20 0.00%
SILVER 00.00 1.20 0.00%

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Metal Market Report December 2019 - Week 1 Edition

December 2019 - Week 1 Edition

Project 20/20 Update – Bids are Already Increasing

Our Project 20/20 is already well underway. We have been buying selected $10 and $25 gold eagles, $2.50, $3, $5 and $10 Indians and Type II and III Liberty Double Eagles and more. Partly as a result of this targeted program, we have already seen many of our targeted coins rise in price.

By using the capitalization approach (coin population reports times market value), we now have one more tool toward determining better coin purchase opportunities – where the profit leverage is to your advantage.

Last month, I noticed that many of these coins are becoming much more difficult to acquire. Not only have I reached out to all my dealer contacts accumulated in over 40 years in the business, but I have also upped my bids on over 100 of our Project 20/20 coins in the last week. This is just the beginning. I expect this rising price trend to continue, so when we have a 20/20 coin that appeals to you, I urge you to contact your account representative to learn more about how you can benefit from this innovative 20/20 program

Gold Opened December Rising

Gold opened December with a strong rise from $1,454 to $1,463 Monday morning, December 2, on a report of weak manufacturing data, then gold gained another $15 on Tuesday to reach $1,478. Silver gained a greater percentage (+1.5%) to $17.20. First, on Monday’s opening, stocks tumbled, and gold rose sharply on weak manufacturing data, while China’s manufacturing index rose to its highest level on record, seemingly giving China the upper hand in trade negotiations. When the President confirmed that the China trade talks were in trouble, the Dow dropped 280 points Tuesday and gold rallied strongly.

The Markets Will Tell us if Impeachment is Likely or Not

The stock market and gold market have recently indicated that they don’t believe the impeachment process will remove the President. Furthermore, the stock market in November seemed to be telling us that Trump is favored to win re-election next year. If Elizabeth Warren, Bernie Sanders or any of the other far-left candidates had a serious chance of winning in 2020, the stock market would likely collapse, and gold could reach $2,000 or more boosting many rare coin prices. However, the stock market began December in a more unstable mood.

Speaking of the election process, Goldman Sachs and other major portfolio managers have predicted that a victory by many of the major Democratic candidates could easily lead to a major (25% or more) stock market collapse,

From the beginning, House Speaker Nancy Pelosi has resisted moving forward with impeachment as it would endanger those Democrats seeking re-election in states where Trump is popular. She has said she would not favor impeachment unless there was bi-partisan support, since it takes two-thirds of Senators to convict and the Senate is controlled by Republicans. Even House Intelligence Committee Chairman, the anti-Trump zealot Adam Schiff, who currently chairs the impeachment inquiry, has said, “I want to discuss this with my constituents and colleagues before I make a final judgment” on impeachment.

The markets are generally smarter than any pundits, and the markets are telling us that impeachment is far from certain for now, but that does not mean that impeachment is permanently out of reach in 2020 or in Trump’s second term. In the meantime, election years have been positive for gold in the last five election cycles, and incumbent governments have tended to run up big deficits by over-spending and promising more spending during election years, so these trends should boost gold in 2020, no matter who wins.

Now is the time for precious metals investors to take a strong position in coins and bullion for these uncertain years ahead. If a Democrat wins in 2020, the stock market would likely fall while gold stages a massive rally boosting rare coin prices. If Trump is re-elected, gold may plateau for a while, but the impeachment zealots will re-emerge. They don’t really need a “crime.” This year showed their hand. Any mistake will suffice. All they need is a fighting chance for 67 Senate votes. Now is the time to contact one of our experienced account executives to construct a balanced coin and bullion portfolio for the contentious years ahead. Uncertainty is often good for gold and rare coin prices and we definitely live in uncertain times!

Beware of Biased Reporters Seeking a Specific Angle to Their Story

Reporting seems to have changed with more reporters being biased rather than unbiased. In the past, reporters sought the truth and were open to the facts, wherever they led. That no longer appears to be the norm.  That’s what we might expect in a perfect world, but in this divided nation, reporters are sometimes told what to seek and what conclusion they must reach. Newspapers of national record often seem dedicated to ousting President Trump or exposing the National Rifle Association.  They rarely devote as much space to the good accomplishments.

To over-weight facts in one direction or another, they will often list dollar figures without a time frame, or they will use partial quotes without context. For instance, a reporter criticizing the CEO of the NRA will cite a generous clothing allowance but will not say if it was for a 20- to 30-year period not a single year. The reporter may cite a percentage increase in salary for one year but not the average increase for several years.

As for using partial quotes, I recall an interview once held by a liberal reporter with the Executive Director of the Numismatic Literary Guild (NLG) several years ago, when a reporter asked if the Guild was giving out “too many awards.” The CEO said, in what he thought was an affable manner, “Well, some people say we give out too many awards, and some people say we give out too few.” The reporter cut that sentence in half, using a statement: “CEO Admits Numismatic Literary Guild ‘Gives Out Too Many Awards.’”  My friend then challenged the use of that seemingly unethical partial quote, but the newspaper’s lawyers said that “an exact partial quote is legal,” even though it goes against the full meaning of the complete sentence!

Any kindergarten child knows that was “unfair”.  Bear that in mind the next time you read an article quoting facts, figures or even “direct quotations.”

One recent example is the polar opposite position taken by The Washington Post and The Wall Street Journal on a Second Amendment case currently before the Supreme Court. The Post sides with the four liberal judges saying that the case should be thrown out (as moot), while The Journal sides with the letter and spirit of the Constitution. This underlines the importance of hearing both sides of a case – something not possible when reading only one source.

 

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