From Birch Gold Group
This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: The gap between paper and physical gold widens, reconciling gold and Bitcoin, and U.S. Mint forced to reassess its coin distribution due to overwhelming demand.
Former U.S. Mint director Ed Moy shares his thoughts on the actual price of gold
Many goldbugs and silver stackers believe the prices of both metals have long been heavily suppressed. Yet there are always detractors from this notion who claim that this is nothing more than a popular myth with little basis in reality.
For an expert take on spot vs. street prices, one needs not look further than Ed Moy, who served as the director of the U.S. Mint between 2006 and 2011.
In a recent interview, Moy explained the recent shortages that have been happening to mints around the world, as well as what he believes should be the true price of gold. With a spot price of around $1,770 as of Friday’s trading session, it’s difficult to say that the metal isn’t performing very well year-on-year. But while this is a high price point from one perspective, Moy believes that it is a significantly diminished figure compared to what gold can actually be bought for.
Moy places the blame for this on gold derivatives (futures, shorts, forwards etc.) that have created an illusion that gold’s spot price has a basis in reality. Any buyer looking to get their hands on physical gold, however, will find that premiums over spot price have climbed as high as 20%:
If you go to any of the top retailers for gold bullion and take a look at what they’re charging for an ounce American Eagle gold bullion coin, even though the spot price right now is $1,775 give or take, you’re hard pressed to find a ounce gold coin for anything less than $2,000, and I’ve seen it as high as $2,100.
Moy expects this disconnection to cease as short contracts expire, resulting in a sudden uptick in price. In a somewhat related note, Asian gold traders recently revealed to Reuters that China’s 150-ton bullion import was meant to prevent further increases on local premiums on gold (which were only $7-$9 per oz).
Why both gold and bitcoin have their own respective place in a portfolio
As both gold and the so-called “digital gold” bitcoin heat up, so has the debate over which is a better safe-haven and secure store of value. ThinkAdvisor’s Ric Edelman offers what could rightly be called the most sensible argument in the debate: that it was never an either-or between the two assets.
It doesn’t take much experience in finance to know what gold’s benefits are. Having been used as the go-to item of internationally-recognized value for most of recorded history, gold has withstood just about every challenge imaginable. There is nobody who will dispute its value, hardly anyone who will reject it, and few who will bet against it.
But it can also appear daunting to some people. Being a commodity, and a rare one at that, it isn’t always easy to acquire in short order, as was demonstrated in abundance last year. While gold boasts tremendous liquidity compared to most other assets, bitcoin outstrips it in this regard, as its fully digital nature makes it available to anyone within a moment’s notice. And, like gold, its fixed supply and ever-growing demand always create enticing future prospects.
Therefore, Edelman, himself a cryptocurrency pundit and proponent, believes that investors should diversify the gold in their savings with an exceedingly similar, yet uncorrelated asset that provides familiar benefits through additional value.
As for the general debate about appropriate assets for savings, Edelman finds it better to question how much exposure to bonds investors should have in the current environment, and the same can likely be said of stocks.
U.S. Mint tightens 2021 limits for silver dollar sales
Part of the U.S. Mint’s mission is ensuring equal access to the coins it issues to the public, which is why orders are frequently limited on a per-household basis. The recent surge in demand for physical gold and silver, however, has forced the Mint to lower the number of 2021 Morgan and Peace centennial coins it will distribute to each household to 10 for each product option (from the original 25).
The Mint is issuing five varieties of the 2021 Morgan silver dollar and one variety of the 2021 Peace silver dollar to mark the centennial anniversary of the shift from the Morgan to the Peace series. Each of the five Morgan coins will be minted 175,000 times, while the Peace silver dollar will have a supply of 200,000. Being commemoratives, these coins will have an uncirculated finish and have a sale price of $85 each.
The coins will be struck in different mints across the country and their pre-orders accepted by the Mint on three different dates. The Philadelphia Mint will issue the 2021 Peace dollar and three different varieties of the Morgan silver dollar, while the San Francisco and Denver mints will each issue their own variety of the Morgan dollar.
Preordering begins at noon Eastern Time, May 24, with the two Philadelphia Morgans that sport different homages to other mints in the country. It will last until June 7 or until all pre-orders have been exhausted. The second preordering will start at noon on June 1 for the 2021-D and 2021-S Morgan coins struck in the Denver Mint and last until June 14 or until depletion. The third pre-order will feature the fifth Morgan variety and the Peace coin and start at noon on June 7 through June 21 or until order depletion.
Considering recent demand trends, we fully expect the entire mintages to be sold out well before the preorder period ends.
With global tensions spiking, thousands of Americans are moving their IRA or 401(k) into an IRA backed by physical gold. Now, thanks to a little-known IRS Tax Law, you can too. Learn how with a free info kit on gold from Birch Gold Group. It reveals how physical precious metals can protect your savings, and how to open a Gold IRA. Click here to get your free Info Kit on Gold.
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WHO IS MORE RICH ??? THE MAN WHO HAS ALL THE GOLD IN THE WORLD WHEN CIVILIZATIONS COLLAPSES INTO FIRE AND RUIN OR THE MAN WHO CAN HUNT, FISH, FARM AND SURVIVE AND PROTECT HIMSELF AND FAMILY ???? WHO IS THE RICHER MAN ??? REMEMBER MY FRIENDS YOU CAN’T EAT GOLD OR SILVER NO MATTER HOW MUCH YOU HAVE. AND AS FAR AS BUYING FOOD, WELL WHERE WILL YOU BUY FOOD WHEN CIVILIZATION HAS GONE DOWN IN FLAMES.
Under the doomsday scenario you outline , nothing will really matter anymore. The argument that cannot eat gold or silver is a cliched and pointless one, as you cannot eat dollar bills , coins or bitcoin for that matter. Not everyone will be able to hunt, fish and farm so the vast majority of humanity will still require a medium of exchange to purchase their sustenance for survival. And it is the medium of exchange ( money/currency ) that one posseses which will become all important in a world of rampant inflation and scarce food supplies. To that end nothing will protect the individual as well as precious metals , which has proven to be the case throughout history.
Unless some cataclysmic event destroys my small town, we’ll still have homes, roads, the skeleton of a grid and retail real estate even after a financial or societal collapse. Without question, barter will be the first form of trade to take hold after the event. After all, the guy that has been out hunting all day might want some soap, or candles or playing cards.
Just so you guys know, my plan is this:
Black Swan Event makes a mess of things – check. Supply lines cease to function – check.
I’ve put away enough food to feed myself and all of my neighbors (though they do not know that). You can get a 12-pak of Ramen Noodles for $2.50 at Walmart. Rice is still cheap as well. My neighbors may get sick of Ramen and Rice but they will not starve and I’ve purchased their loyalty.
For barter items, I’ve put away soap, salt, candles and playing cards. I’ve also built a small 200 watt solar charging station which can roll in and out of my garage. If things are peaceful enough then I’ll roll that out and for a small fee charge up electronics so that people can amuse themselves.
I will also use that charging station I’ve built to charge up my electric lawnmower, electric chainsaw, electric rototiller and other cordless tools that I have. Those items can be rented out for a fee.
These are very good ideas, especially solar charging. Another thing to do would be to have a freezer that runs on solar and sell 2-liter bottles of ice.
BRIEF SNAP SHOT – THE TOP 12
1. Water…at least one well with a hand pump line as well as electric.
Keep pool shock on hand and other ways for purification-Big Berkley, pocket filters etc.
Some 55 gallon barrels and rain barrels won’t hurt either.
2. Food (All types, long shelf life, ability to grow, can, freeze dry…etc. Animals, even if it’s just
chickens)
3. Cooking (propane camping stoves, Rocket stove, Grills etc.)
4. Essentials (Soap, T-paper, it’s a looooooooog list – vodka for snake bite…and two snakes)
5. Medical Supplies and extensive 1st aid kits (medical Books)
6. Shelter from the storm
7. Defense/Offense (Guns, Ammo, Mags, Gear, trained muscle memory & a bad attitude)
8. Barter (dirt cheap right now)
9. Cash (it will work at first)
10. Pre 1964 Silver Coins, American Eagles 1 oz.
11. Gold (if you have wealth 1/10th, 1/4th, 1/2, & 1 oz. American Eagles and others)
12. Plan B and C or just determine to die on your hill…and make yourself as expensive as possible before they reach me!
If you had one book to help you prep…this is it:
The article goes into the new Morgan & Peace dollar sales pretty well, but leaves an interesting detail out. The orders will be taken about mid-year, but the coins won’t start shipping until fall.
“Pre-orders will be accepted by the Mint on three separate issue dates. Product orders will not begin shipping to the customers who placed them until October.”
https://www.coinworld.com/news/us-coins/mint-tightens-household-limits-for-2021-silver-dollars
At $85 apiece you’d be better served buying twice as many bullion ASE coins with your paper. You’ll be waiting until next year or longer for the Morgan/Peace dollars to hit the secondary market and most of them will likely be graded coins that were bought by dealers. In 2005 the US Mint sold limited release USMC sterling silver coins and the two I managed to snag were $45 each, NGC graded. Spot silver was just over $20 when I got ’em, so I didn’t really get a deal. I bought two expensive 92.5% collectibles with an inflated premium based on manufactured scarcity.
So who won? The Mint and the dealers, but that’s ok. The two coins were two expensive collectibles averaged into hundreds of bullion coins of better value.
The former Mint director had some interesting things to say. His interview is/was on Kitco.com.
His comments verify the above ground amount of coin silver is in short supply due to high demand. Coin blanks are difficult for the Mints to source and it’s a good idea for investors to listen up. Buy physical and buy shares of the mining companies. When the physical above ground gets short, investment cash will seek mining shares.
Looks like the premium on bullion silver still around 30%-ish. WTF is going on there?
The beginning of the end of the dollar.
This guy’s correct Market/Fed prediction track record is 99.9% accurate the last 5 years.
I don’t know when…but everything he says above I believe is right on. I have been trying to get my son-in-law to take some profit and hedge some of his dollar/stock 401k, but he can’t see the forest for the trees…
The dollar is on its death bed…and dollar 401k’s, and what’s left of the middle class are going to get destroyed in the biggest planned ambush and transfer of wealth in the history of the world.
I’m not a trader…and not interested in crypto…this slow motion intentional economic implosion has been planned a long time by the Luciferian Banksters.
When the debt bubble pops…the Luciferian Banksters will then shove their Great Reset…and UBI down everyone’s throat…and the herd will stampede into their own slavery kissing their claws.
Like Claus said: You will own nothing and you will be happy…all I can say as a self-sufficient man soon to be off the grid: “Come and Take What I own…bring on the ORCs and Flying Monkeys…nobody gets out of here alive anyway”.