What the Heck Are We Up Against With PM's?

The truth is more people are investing in bit coin and thats taken away from
gold and other PM,S that people would have purchased.

 

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I agree. Premiums always stay up after an "event". They did the same 10 years ago, stay up too long because many were still buying. It will take some time for these newbies to lose interest, and supply will force prices back down. Right now I am just buying interesting coins that happen to be made of gold.

 

For quasi-bullion coins -- like Saints -- the premiums tend to be HIGHEST when the underlying metal price is LOWER.

 

Well something like a 65 has its own numismatic demand, so from a bullion price perspective it would appear that way.

 

what "event"?

 

An event like an economic shock. In the late 70s it was inflation, in 2008 it was housing shocks, and last year Covid. That is why I called it an event. Its something that panics people into buying pm.

 

maybe. the stock market sure seemed to do well compared to 2008. Wish I had dove deeper into the market

 

Here's the 62 Chart:

 

Just like housing. When interest rates are low, prices soar.

 

Smart move and that's the way I've been buying lately. I'm hoping that this isn't a "sign of the times" forever. If it is we're in deep dookey!

 

I also looked at BTC when it was sub $200. About that time a couple of wallets, or whatever they're called got hacked, and everyone lost everything. I decided to stack silver and gold instead. I can leave it for the kids and no one will be the wiser.

 

Dollar cost averaging is still one of the best ways to play the PM market without getting roller coastered.

There isn't much silver coinage available right now in shops even with these crazy premiums. But, I work estate sales. And we occasionally turn up unusual sterling. Now, if only I knew where to flip generic sterling (post-war silverware & tea sets are more common than anything else).

 

In a word nice

 

Kitco just announced that the US Mint sold over 412K ounces of gold in the first quarter of 2021, the best in a long time. You tell me what's going on with pm's.

 

There way to high, regardless of how much they sold, excessive premiums are being
driven by fear

 

Exactly! I just couldn't believe the announcement that's it's the best quarter the Mint has had for sales of expensive gold ounces since 1999.

 

You don't know who is doing the buying.....could be replacement stocks for foreign Central Banks....Indian/Chinese gold buyers who took 2020 off because of Covid-19....stockpiling ahead of the 4th or 5th or 6th waves...whatever.

 

Correct but regardless of who the buyer(s) are it's the US Mints best quarter for gold bullion sales in 22 years.

 

That's the BOTTOM line !!

 

We should have some anectdotal evidence of who is buying if not from the Mint, than from the coin publications talking to dealers.

Maybe we even have some dealers here who sell AGEs and can chime in....?