Gold Might Take Longer to Recover|
May 16, 2013
This article was originally printed in Numismatic News.
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As the stock market rallied to new highs, precious metals came under pressure. They have broken from the recent trading range to the downside. Platinum has attempted to hold ground, now at 1.07 to 1 versus gold, this on continued mining and production problems. I would not buy gold now. I believe platinum has a better floor under it. Silver is also a better bet at over 61-to-1 versus gold. I am not throwing in the towel on gold, but the bears are in current control. Gold could turn on a dime, but it is more likely this weakness will play out over several months or years. The Roman Empire took over 100 years to fall. The U.S. dollar will not take as long, but it still has some legs thanks to other countries debasing their currencies as well.
Silver dollars are strong. At the ANA show a large percentage of my sales were Morgan dollars followed by Indian Head gold. Circulated Morgan dollars are not following silver lower, nor are Peace dollars. Premiums have increased. Demand is outpacing supply. There seems to be a promotion on New Orleans Mint circulated issues with most at a slight premium to the other generic issues. The 1880-O is up in all circulated grades and is joined by the 1878-CC. The latter date has been running up in Mint State all year and it was only a matter of time for the circulated grades to pop up. Mint state 1879-CC, 1885-CC, 1886-O, 1892-CC, 1892-S, 1893-S, 1894-O, 1894-S, 1895-S, and 1934-S dollars are popping.
Proof sets of the first half of the 1950s have become active. The proof set sector seems to be ignoring lower silver as well with strong activity in recent sets. Email: firstname.lastname@example.org.
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