GOLD 00.00 1.20 0.00%
SILVER 00.00 1.20 0.00%

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Metal Market Report June 2022 - Week 1 Edition

June 2022 - Week 1 Edition

Gold Beats the S&P         

Through May 31 this year, gold is up about 1% while the S&P 500 is down 13%, and silver is down 6.6%. The general Commodity Research Bureau (CRB) Commodities Index is up 35.7% for the first five months of 2022, while crude oil is up 53%.  Now, precious metals should start catching up to other commodities.

Our Month-End Survey for May 2022 – Metals and Commodities Still Beat Stocks

While gold hasn’t performed in a spectacular manner this year, it is up 1.1% through May 31, even though the dollar index is up 6.3%.  That means gold is up over 7% in terms of a basket of other currencies, such as the euro. While inflation is high in America, it is soaring in Europe and other regions, in terms of their weaker currencies, but here’s the five-month track record in U.S. Dollars:

 

Inflation continues to increase, although the Federal Reserve’s interest rate increases may tame the threat of double-digit inflation over a decade of “stagflation,” as happened in the 1970s. Still, the Fed usually makes plenty of mistakes and the Biden administration can fall into the deficit spending trap by creating trillion-dollar deficits every year.  The combination of higher interest rates and rising deficits automatically bloats the deficit through debt service alone and eventually boosts gold prices.

U.S. Mint Bullion Coin Sales Continue to Soar in May

During May, the U.S. Mint sold a phenomenal 147,000 ounces of Gold American Eagle coins, compared to only 20,500 ounces in May of 2021, a more than seven-fold gain. For the first five months of the year, Gold American Eagle coin sales totaled 661,500 gold ounces in 2022 vs 471,000 ounces in the first five months of 2021, a 40.4% gain over last year.

The Gold American Buffalo sales are also up 41% in 2022 vs. 2021 - 234,000 oz. vs. 166,000 oz.

Increased sales of gold bullion coins to new customers leads to an increased number of new rare coin customers. 

Most Americans Are “Good Samaritans,” Despite What You See in the News

The nightly news often focuses on the worst of mankind’s evils, whether they be mass shootings in schools or overseas wars, but 90% of Americans are a diverse group of good people who volunteer to help their neighbors and rush to help those in crisis. My wife Karen and I were honorary Chairs at the 11th Annual “Deliver the Difference” Luncheon of Meals on Wheels on May 5th. Karen has delivered meals to seniors in their Nutrition & Services for Seniors (NSS) program for 17 years, with the S.E. Texas team delivering 2,000 meals a day in all seasons and weather, including throughout the pandemic

She even drove prominent local leaders on her route, including District Attorney Bob Wortham and Diocese of Beaumont Catholic Bishop Curtis Guillory to show them how the lay people of every faith (she is Baptist, I am Catholic, making us a “Batholic” couple) live their faith. We have supported the NSS program for two decades. As Karen said, “We were put on earth to serve others … to give back. We have been blessed, so we help others whenever we see the need.”

In light of the Memorial Day holiday just past, she was reminded of the ultimate sacrifice when shopping in our local market. Everyone came to a halt at 3:00 pm when a bugler played the 24 notes of “TAPS” in the market, and all activity stopped, in honor of our fallen service heroes.

Steve Hartman, of CBS News, offered a feature on “TAPS” Sunday morning, with buglers (even those playing trombones, alone or in trios) performing all over the nation, including Uvalde, Texas, this week.  Here’s a link to the short (2:36) video on Memorial Day TAPS from Steve Hartman.

Most Americans are like the people at our banquet who take care of their neighbors in need. Most of our staff also fall in that category, especially when hurricanes or high waters hit our coastal city of Beaumont, Texas. Many of us host first-responders or go out personally into flood-ravaged areas and bring food and medical supplies to those in the greatest need. Most people around here are community-minded folk who do good things for others. They typically aren’t involved in the negativity you hear about in the daily news or the weekly “Meet the Press.”

I’m speaking about people from all races, creeds and backgrounds. We have served people with AIDS, Alzheimer’s and Autism, and those with Cancer and Children with reading needs – and that’s only the ABC’s of it. We need to hear more about this good news of neighbors helping neighbors in the daily news like Steve Hartman emphasizes weekly!

 

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