Gold - Is $1900.00 the New Normal?

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Gold is going to go up because of favorable supply and demand trends, TC. Fiat this or that really doesn't matter -- definitely NOT for retail (who can't move the prices) and not even for most institutions who have other more efficient means to counter declining currencies.

BitCoin does appear to be gaining flywheel traction. I've never bought it but the younger crowd seems to like it and institutions and the super-rich apparently like it. Recently met with a guy whose boss owns over $1 billion Bitcoin -- not selling.

If real GDP and purchasing power are increasing, that is all that matters. U.S. holders of dollars don't track the dollar against other currencies. You may see the effects in the cost of an imported TV or car....or a vacation overseas....but for day-to-day living, it's not a factor.

 

I believe if you understand AI fundamentals as I've advocated and applied in my highest quality TPG Gold coin acquisitions, it's believed that someone has applied same with excellence!

Properly applying all of perceived correct values of bidding/winning parameters for highest grade TPG certified U.S. Gold coins when Gold "spot" has declined $85, I can't win a coin!,

Gold coin offerings are at believed insanely high values, and some are acquiring at bargain basement prices!

A CORRECTION HAS OCCURRED IN NORMAL BIDDING PROCESSES!!

JMHO!!! LOL

 

Completely unrelated (sort of) but I've noticed Morgan silver in MS grade in moderately difficult dates/grade are harder to cherry pick below suggested Redbook or listed NGC coin guide. Lately everything is hammering above expected price. It seems the demand for collectibles has definitely picked up the pace in the past few months, prices of precious metals aside. I don't buy gold because I don't know how to grade it, but have you noticed that in gold?

 

I believe if you had read my most recent posts on this site, they state the trend you're observing in Silver and Gold coinage, of which I'd benefited!

I predicted a further future change where it would be virtually impossible to realize the same benefits, possibly because of extraordinary AI use.

Current spot Gold price change was ~-$90, while premiums are appreciably increasing!

The Coinflation shown spot price has been seemingly changed from significant negative to positive.

JMHO

 

Does the face value of a gold coin affect its worth? or add on Premiums.

 

Yes, the face value of a coin determines its' relative value, as shown in my attachment declaring the tangible Gold worth in fiat:
https://www.coinflation.com/gold_coin_values.html

 

I would say yes because I think the face value is a one to one relationship with the weight of the coin. IE, a 20 dollar gold piece has 4 times as much gold as a 5 dollar piece? Is that what you are asking? Or do smaller denominations have a higher premium due to relative affordability/collectability? In other words, a higher premium for the smalls, a bigger convenience fee? I don't know but we'll find out soon.

 

Premiums usually go up if the gold content goes down. More people can afford a 1/10th ounce of gold than a half or full ounce.

 

I considered five variable parameters when buying Gold coins.

Since I'm currently consistently losing, it's believed AI is being utilized where additional variables are being considered, generally being unavailable to average buyers who pay an elevated Gold mass premium.

The Gold mass premium generally is dependent upon the coin size.

JMHO

 

It could...though the dollar is holding up nicely against other currencies.

I do hope somebody reminds the new administration that part of the deal of being a global reserve financial currency is you MUST run a trade deficit (or capital account surplus). You can't eliminate it.

 

Hmmm!

Is your household operated on that basis, where a balanced budget isn't anticipated, only a declaration of bankruptcy if funds aren't donated?

I may need to withdraw from "reserves", but my finances are balanced every month!

 

There are many, many differences between the way our household runs and the way a large industrialized country runs. Thank goodness.

Comparing a national budget to a household budget makes for fine soundbites, but doesn't shed much light at all on the way things should be.

 

My guess is that in a rising price environement....price lists are stale and on the low side for both silver and gold.

As I've long suspected...when you bring in lots of new bullion buyers for gold and especially silver (2020-21)....some gravitate to quasi-numismatic silver coins if they aquire a taste beyond pure silver bullion.

Plus, those who can't afford the pricey MSDs or 1-ounce gold coins will bid up a $150 MSD to $175 or more as it's more affordable. We saw that with lower-grade large denomination bills.

 

https://www.coinworld.com/news/precious-metals/massive-gold-discovery-reported-in-central-china

 

Non-event.....50 tons a year of supply is 1.5% of current supply....plus it will take YEARS for this to hit the market, assuming it is economic in the first place.

 

I saw this a couple of weeks or so ago in the news. The spot price of gold went UP that day it was reported. Go figure.

 

The problem is that you're failing to recognize what's called the network effect. The number of 'fools' is growing. It's growing rapidly. In order for Bitcoin (not BitCoin) to go to the trash heap as you say you'd expect to see the number of fools decreasing.

I don't know exactly how many other technologies have been written off in the past. "The automobile is just a passing fad. It will never overtake the horse and buggy"
"The world market for computers is maybe five at most" - a CEO said back in the 1940's
"The iphone doesn't stand a chance" - Microsoft, 2008