Gold Investing Guide - Useful Information On Popular Gold Investments

Gold Investing - A Change To eBay Coin Auctions

2012-01-26T18:17:00.000-08:00

eBay has announced that, as of 02/20/2012, they will no longer accept listings for replica coins in their coin auctions. As you may know, a replica coin is considered to be "a copy or reproduction of an actual coin, including U.S., foreign and other historic coins". Not everyone is happy with this but I think it is a good move. eBay could take some heat off of themselves if they set up another category just for replica coins.

In the past, I attempted to include current eBay auctions on certain pages of my Gold Investing Simplified web site. My intent was to provide the visitor with active auctions of $20 Libertys, $20 Saints, American Gold Eagles and Krugerrands. What I ended up getting was mostly crap with "real" coin listings far and few between. So I dropped them from all but the Krugerrands page. Once the replicas are banned, I may reinstate the listings if it means better information for my visitors. An article describing eBay's announcement and rationale can be found here.

Gold has certainly enjoyed some nice gains the past few days. On Wednesday, spot gold moved past $1700 per ounce for the first time since mid-December (a gain of $44.40 on the day). As of this writing, spot gold is at $1717.80, a gain of $112.70 over the last 30 days. Silver is also having a few good days and spot silver is at $33.26, a gain of $4.54 in the last 30 days.

Here's where we stand regarding Gold American Eagles so far in January...

one-ounce gold eagles - 76,000, half-ounce gold eagles - 46,000,
quarter-ounce gold eagles - 32,000, tenth-ounce gold eagles - 75,000.

Silver American Eagles are at 5,697,000 and within striking distance of the all-time monthly record of 6,422,000 set in January 2011.

In closing let me say if you are shopping for gold or silver coins and haven't browsed eBay coin auctions, you are missing out. Even if you don't want to buy, you can get quite an education on what is selling (and at what price) and what is not selling (either due to too high asking price or just no demand). There are always some coins being offered that I am interested in buying but there are others I would never buy on eBay. But that discussion is for another time.

Thanks for reading.

Gold Investing - An Event That Didn't Happen

2012-01-01T22:41:00.000-08:00

Gold has certainly had some serious setbacks in the last few months. After reaching a lofty high of $1900.30 in September, the end of December saw the price drop to $1531.00. One thing I was watching for was for a possible drop below 2010's ending number of $1421.60.

There are powerful forces against the rising price of gold and it was certainly possible for this take-down to occur in the thinly traded markets that are normally associated with end-of-year activity. If it had happened, we would have had to listen to anti-gold faction crowing about how the gold bubble had burst and to look for a steady price decline.

As it stands now, the gold bubble hasn't burst and has an 11 year pattern of higher year-over-year closing prices (you can see all of these prices on my Gold Investing Home Page ). Spot gold ended 2011 at $1566.40, a gain of $144.80 (not quite 10%) for the year.

Here are the December and total 2011 Gold Eagle totals from the U.S. Mint (assuming no adjustments to these totals in the first few days of 2012):

one-ounce gold eagles - 65,500, year-to-date 910,000;
half-ounce gold eagles - 0, year-to-date 65,000;
quarter-ounce gold eagles - 0, year-to-date 82,000;
tenth-ounce gold eagles - 0, year-to-date 370,000.

A total of 1,000,000 ounces of gold were used to mint these 1,427,000 bullion coins in 2011. Silver Eagles for 2011 had an ending number of 39,868,500.

On a positive note, the U.S. Mint announced last Wednesday that they anticipate having enough American Eagle gold and silver bullion coins to meet demand in early 2012. For the last several years, the Mint has had to allocate their early sales of gold and silver Eagle bullion coins (to its authorized dealers) due to an unprecedented demand and a lack of coin blanks (planchets). It was reported on Reuters web site and you can find it here. Two other items from the Mint: 1) the 24k Gold American Buffalo won't be available until March 2012; and 2) they will begin accepting orders for the 2012 dated one ounce, half-ounce, quarter-ounce and tenth-ounce American Eagle gold and silver coins starting on Jan 3rd, 2012.

One last article I would like to call your attention to is by Egon von Greyerz, the founder and managing partner at Matterhorn Asset Management out of Switzerland. This entry appeared on the King World News Blog on 12/29/2011. He gives his thoughts on why gold has gone down and his prediction for what gold will do in 2012. The article can be read here.

Thanks for reading. Happy New Year.

Gold Investing - Gold Down Big, Time To Bail?

2011-12-17T22:58:00.000-08:00

I suspect, with the recent dip of spot gold's price below $1600 per ounce, you may have done some soul-searching as to your gold investments. If you have some, should you sell now to lock in some gains (or limit your losses)? If you have not yet invested, is this a good time to jump in or has the bubble truely burst?

Regarding my thoughts, I am not ready to give it up just yet. In fact, as long as the price stays above $1500, I don't give it a second thought. If it drops down to $1200 or so, then I might have to make a decision. I don't think that will happen and several very savvy investors don't think there is a reason to panic either.

Many of the so-called experts that are saying the bubble has burst did not see this 11 year bull market at all (but now they are sure it's over). You must understand that, to some, a high and rising gold price is not desireable as it is a reflection on the weakness of paper-based assets. With the present condition of many economies and their fiat currencies, thinking the bubble has burst is wishful thinking in my humble opinion. And I'm not alone...

Zerohedge posted an article on 12/14 titled Citi predicts Gold At $3400 In "The Next Two Years", Potential for Move As High As $6000. If they are even half-right, that doesn't sound like the bubble has burst to me. The article is here. John Hathaway, the seasoned manager of the Tocqueville Gold Fund, believes that gold's run is not over yet and that "This correction is well within the confines of what you can tolerate to say gold is still in a bull market." That article can be found here.

Richard Russell, The Godfather of newsletter writers, was quoted in a King World News blog titled Gold Trading Above $1,500 is Bullish Action. He believes the great bear market rally in stocks is about over and recommends GET OUT OF STOCKS. He states "gold will be the last man standing". The article is here. Two days later, in another King World News blog, Mr. Russell stated "I will Stay with Gold & Gold Stocks to the End". In this blog entry, Richard Russell makes some hard-hitting statements about America and the current state of affairs. He has lived long enough to have insights that most do not. If you want to limit your reading to "happy talk", don't read his comments. Otherwise, they can be found here.

I want to end on a happy note. Some generous donor in Pennsylvania dropped a one-ounce South African Krugerrand in a Salvation Army red kettle. This has happened before but the donor remains anonymous. I can't think of a much better place for a Krugerrand to land. The very short article is here.

Thanks for reading. If you celebrate it - Merry Christmas. If not, Happy Holidays.

Gold Investing - What Happened to November's Gold Eagles?

2011-11-15T18:28:00.000-08:00

I like to check on the U.S. Mint's Gold Eagle program a few times each month to see what the numbers are. So far in November, with the month half over, the numbers are dismal. Thru 11/15 those numbers are...

one-ounce gold eagles - 11,500, half-ounce gold eagles - 0,
quarter-ounce gold eagles - 2,000, tenth-ounce gold eagles - 5,000.

This is by far the slowest start of any month this year. October was the next slowest production month with 50,000 ounces of gold used for all Gold Eagles produced in that month. So far in November only 12,500 ounces of gold have been used. You always have to wonder if they are again having trouble getting the blanks (planchets) to make the coins. Just a few days ago, it was announced the U.S. Mint purchased (or agreed to purchase) $1.25 billion in gold and silver bullion from Sunshine Minting Inc. (Coeur d’Alene, Idaho). The article states Sunshine Minting "supplies raw silver and silver and gold blanks to the U.S. Mint and 13 other government mints around the world." You can see the article here.

The current bull market in gold will turn 11 years old in February of 2012. Gold has gained each year since 2001 including the very rough year of 2008. This year looks to be more of the same as gold is up approximately 30% in the last year. This after gold reached a high of $1,920.30 an ounce in September then dropping to $1,534 an ounce later in the month. Spot gold currently is at $1769.10.

There are many savvy financial professionals who are predicting gold will go much higher, not the least of which is the respected Stephen Leeb. He was recently quoted in two separate entries appearing on King World News Blog which you might find of interest. You can read them at This Will Drive Silver to $100 Rapidly and at You Have to Love Gold Here.

One last blurb for those who hold silver coins - I just published an article on Cleaning Silver Coins on my Silver Investing Simplified site. Before you even think about cleaning any of your silver coins, you may want to to review this article. It is at Cleaning Silver Coins.

Thanks for reading.

Gold Confiscation - What Are The Odds?

2011-10-17T19:30:00.000-07:00

It seems like more articles are popping up concerning gold confiscation - what the U.S. Government will do, may do, won't do, can't do, etc. This all stems from the original confiscation of most gold holdings from U.S. citizens in 1933. I say most because within the Executive Order it stated "Gold coin and gold certificates in an amount not exceeding in the aggregate $100 belonging to any one person; and gold coins having a recognized special value to collectors of rare and unusual coins." were exceptions. So an individual could legally own just under five ounces of gold (the price of gold was $20.67 at the time) and a number of rare and unusual coins (as a collector). You can see the entire document at Executive Order April 5, 1933 .

How updates to the gold confiscation language progressed from 1933 until the present day is the topic of the first article I would like to call your attention to. Written by David L Ganz J.D., it is titled "Gold Confiscation: Here's how it could happen - and what you can do about it". After reading his credentials, I can't imagine too many people more qualified to write on the subject than Mr Ganz. It is a long article and you might want to skim the upper part until you get to the commentary on the applicability of current U.S. law to gold ownership. There is an impressive picture of gold coins (well worth seeing) at the end. You can read the article here.

The second article related to gold confiscation appeared on the GATA (Gold Anti-Trust Action Committee) web site. It details correspondence that GATA had with the U.S. Treasury Department in 2005 (possibly the most recent "official" statement from the U.S. Government as to its powers, or perceived powers, concerning gold and silver confiscation). The article provides the actual list of questions GATA has asked the government to respond to as well as the detailed response provided by Chief Counsel of the responsible area of the U.S. Treasury. You can see it here.

Some investors take great comfort in the fact that rare and unusual (numismatic?) coins were exceptions to the law and, therefore, would surely be exempt again if gold confiscation became a repeat event. This feeling is helped along by some dealers telling their customers that a coin with a 15% or more premium over the spot value of gold won't be confiscated.

I don't believe there is such a thing as a confiscation-proof coin. The current language would seem to favor coins that are rare and unusual but that language could be changed in a heartbeat by a desperate government. As far as the 15% exemption law, I don't think it exists. A regulation was proposed in the Federal Register, Vol 49, No.3, 1/5/1984 but it was never adopted. If you have proof that there is such a law, I would be most interested in being notified of it.

I don't believe that gold confiscation is in our near future as there are much more attractive targets to home in on (can you say 401k?). But information is power and hopefully these two articles will help you make informed decisions on your future gold investments.

Thanks for reading.

Gold Investing - September A Busy Month For The U.S. Mint

2011-10-03T19:20:00.000-07:00

The early September production numbers of Gold (and Silver) Eagles started out low, leading one to believe it would be another ho-hum month for these popular bullion coins. And then things started happening and the numbers came out fairly decent. Silver Eagles had their second highest month of the year at 4,460,500. Gold Eagle numbers were about in the middle of the pack for the year so far. Final September numbers for Gold Eagles...

one-ounce gold eagles - 87,500 (just 17,500 reported thru 9/10);
half-ounce gold eagles - 1,000 (0 reported thru 9/10);
quarter-ounce gold eagles - 2,000 (0 reported thru 9/10);
tenth-ounce gold eagles - 25,000 (5,000 reported thru 9/10).

So far in 2011, 852,000 ounces of gold have been "used" in support of the Gold Eagle program and another 132,500 ounces in their 24K Gold Buffalo program.

Some gold investors are getting nervous after the price of gold had its worst week since 1983. Not Richard Russell who recently stated "I look at gold and silver, not as a play for profits, but as an accumulation of hard assets, in a world that it drowning in fiat money, and a world that will probably print trillions more of irredeemable paper." You can read the entire post here.

One last article to share with you regarding the price of gold and if it's time to bail. "The recent selling of gold was related to panic from hedge funds needing to raise money for redemptions as well as a tightening of margin requirements. This was not selling pressure based on any fundamental change in conditions or outlook."This short article appeared on MarketWatch.com and you will find it here.

At the time of this post, spot gold sits at $1,666.30 and spot silver is at $30.77.

Thanks for reading.

Gold Investing - The Price of Gold on 09/11/2001

2011-09-11T14:47:00.000-07:00

It's hard to believe 10 years have gone by since the tragic events of September 11, 2001. I remember it well, glued to the TV for hours, and am sure most of you do also. In case you haven't been reminded of it recently, the price of gold on that day was $271.00 and silver was priced at $4.18. I have seen different figures for these metals on that day and am using those that have appeared in Richard Maybury's Early Morning Report newsletter.

At the time of this post, spot gold is at $1852.10. That is a handsome profit if you bought gold in 2001 and are still holding on to it. And yet I'll bet there were those talking down gold at that time saying it was over-priced and wasn't going any higher than that. We seem to be blessed with "experts" casting doubt on the sanity of buying and holding gold. Here is an amusing video that appeared on CNN's web site in which the presenter "talks about the complexities and misconceptions surrounding gold". He doesn't pooh-pooh gold entirely but questions the future value of gold whereas a $20 bill will always be worth $20. What he doesn't say is what that $20 will buy a year from now or even six months from now (two gallons of gas and a loaf of bread?). You can view the video here. It isn't very long and the pictures of gold are worth it.

Earlier I reported on the price of gold and silver on 9/11/2001. Here is an article that presents various asset classes and how they have fared in the last 10 years. If you have the courage to view this, it can be found here. I found it very interesting.

Last article to share with you is a blog entry that appeared on the King World News Blog. The respected Stephen Leeb says "Expect Enormous Gains in Gold & Silver". This is a quick read but Mr. Leeb makes some very hard-hitting statements. As an example, "Gold is going to become the asset of choice in this country and right now it is not even considered to be an asset class (by the mainstream). It will be ‘the’ asset class in the next several years. You’re looking at things you don’t even want to think about because if you say what could happen, people look at you like you’re a lunatic." I encourage you to read this - it is here.

Current gold statistics from the U.S. Mint through 9/10 ...

one-ounce gold eagles - 17,500, year-to-date 690,000;
half-ounce gold eagles - 0, year-to-date 61,000;
quarter-ounce gold eagles - 0, year-to-date 70,000;
tenth-ounce gold eagles - 5,000, year-to-date 325,000.

Add to those August numbers 4,000 one-ounce 24K gold buffaloes. Silver eagles stand at 651,000 so far in August and 29,602,000 so far for the year. I will be adding more detail on silver on my Silver Investing Blog very soon.

As you have probably noticed, I post entries on this blog when I have something useful to share and am in the writing mood. I'm not sure when the next one will be since I am scheduled for surgery on 9/15. Thanks for stopping by and reading my posts.

Gold Investing - Gold Prices On A Roller Coaster Ride

2011-09-01T20:58:00.000-07:00

What a wild month August gave us for gold prices. After reaching a record high of $1,917.90 an ounce, gold proceeded to drop $170 in a little over 48 hours. I was glad to see the price didn't break below $1750 and, as of this post, sits at $1827.80. That represents about a 10% increase in August and a 46-47% increase ($583) gain in the last year. Not too shabby. I just read that JPMorgan Chase analyst Colin Fenton predicted gold could spike to $2,500 an ounce over the next four months! We'll have to wait and see if that explosion occurs.

Here are the final August 2011 numbers for Gold American Eagles:

one-ounce gold eagles - 103,500, year-to-date 672,500;
half-ounce gold eagles - 3,000, year-to-date 61,000;
quarter-ounce gold eagles - 6,000, year-to-date 70,000;
tenth-ounce gold eagles - 55,000, year-to-date 320,000.

Add to those August numbers 28,000 one-ounce 24K gold buffaloes and 3,679,500 Silver American Eagles and you have some very busy U.S. Mint employees. These numbers come in second - only January 2011 numbers are higher than these figures. Year-to-date silver eagles stand at 28,993,000 and stand a good chance of topping 40,000,000 for 2011.

Here is an interesting article that appeared on Gallup's web site on 8/25. Titled "Americans Choose Gold as the Best Long Term Investment", it includes Real Estate, Stocks/Mutual Funds, Savings Accounts/CDs and Bonds along with gold. 34% chose gold with real estate second at 19%. They break down the 1008 individuals in the survey by age, sex, income and political affiliation. You can read the article here.

I read a lot of articles - maybe too many. This one caught my eye "Real People Say "Screw You" To The Markets" written by someone who is obviously very disgusted with what is going on (and has gone on) on Wall Street. I am not including this because they are my views but I thought it was an interesting read. I wonder if the author is a gold bug. The commentary is here.

Thanks for reading.

Gold Investing - What Will You Do When Gold Goes Parabolic?

2011-08-23T21:48:00.000-07:00

The price of gold has taken a hit the last two days which is not unexpected. It became overbought - gaining almost 30% in just two months. At the time of this post, spot gold stands at $1761.10. That's were it was less than two weeks ago. We may see more volatility with the CME raising margin requirements by 27% at end of day tomorrow. That usually results in downward pressure on the price of gold (it sure worked well for silver). But the bull is not dead - yet.

The well-respected Dennis Gartman stated recently "Gold is strong in any and all currency terms and it is now entering that stage when prices go parabolic." So what actions will you take if/when gold takes off to the stratosphere? Will you be buying more gold at $3000 or $4000 or $5000 with the idea of selling at (insert your figure here)? No one knows what the top will be and to try to time the exact top is foolhardy.

If you plan to sell your gold when the price goes parabolic, you will have to decide where to invest the proceeds. No easy task if you are looking for a good fiat currency to invest in. The latest issue of Markets at a Glance commentary from Sprott Asset Management provides an answer - real assets. A brief quote from this six-page PDF states "What needs to be understood is that paper promises (sovereign debt and fiat currencies) are ‘faith-based assets’. They have no inherent value. They have perceived value in that they have historically been convertible into real assets. With their value decreasing against real assets, however, we are of the view that holders of faith-based assets will be increasingly unwilling to store their wealth in them. This will drive up the prices of real assets versus faith-based assets, a process which we have already begun to see en masse." You will find the entire commentary here.

Real assets can include many things besides gold and silver - a car, land, tools, a pantry full of food, a generator, items to make your life easier, etc. I just invested in a real asset that should give me years of service - a sturdy wood splitter. For me (living in the north woods of Wisconsin), this is an asset I can use to easily split wood. I can use the help heating my house during our long and notorious winters thereby saving on heating bills. Another asset I had that came in handy a few weeks ago was a Honda generator - used extensively when I lost power for about a week. You might want to start thinking about what real assets you could use before things get too crazy.

Of possible interest to some readers is the announcement by the U.S. Mint on Monday (8/22) that they are suspending sales of all numismatic gold coins at this time. The post I read states "It seems the The US Mint has reserved the right to suspend sales early “in the event that the selling price of United States Mint gold bullion products begin approaching the sale price of the gold numismatic products.”" I wonder what they will decide to do now that gold prices have "dipped" by about 8% in the last two days. The full article is here.

Thanks for reading. Be sure to stop by my Gold Investing web site for useful gold information.

Gold Investing - An Important Anniversary For Gold

2011-08-15T20:44:00.000-07:00

Today is the 40th anniversary of the U.S. dollar's link to gold going away. President Nixon made this announcement on August 15, 1971. Up to this point, foreign governments could exchange their U.S. dollars for gold at $35 per ounce. When this became a problem, the gold exchange window was closed and the dollar became a fiat currency. Inflating the money supply became possible and that is the course that has been followed. And hasn't that worked out well for us all!

In the "olden days" gold was money and when you thought of money, you thought of gold. I remember my Dad telling me he sold a car back in late 1920's for five $20 gold coins. Can you imagine trying to buy something today with a gold coin? People are becoming more aware of the value of gold but there is still a long way to go. And that is why I think this gold bull market has a long way to go also. Richard Russell thinks so too.

Richard Russell is considered the Godfather of newsletter writers. Here is what he had to say in a recent King World News Blog entry: "When chaos reigns, people look for certainty. When all is lost, only one item stands supreme and has been supreme for thousands of years. That item is gold."

He believes that, with the current state of affairs, gold will reach $2000 shortly. Once that is reached, the next objective for gold is $2500, then $5000 and from there - eventually $10,000. You can read the blog entry here.

The mid-August numbers from the U.S. Mint for gold are as follows:

one-ounce gold eagles - 69,500, year-to-date 638,500;
half-ounce gold eagles - 3,000, year-to-date 61,000;
quarter-ounce gold eagles - 4,000, year-to-date 68,000;
tenth-ounce gold eagles - 40,000, year-to-date 305,000.

Spot gold stands at $1764.30 at the time of this post - up $170.20 for the last 30 days with a gain of $538.80 for the last year.

Thanks for reading.

Gold Investing - Tips On Buying Gold On eBay

2011-07-31T13:50:00.000-07:00

Reuters recently published a blog entry titled "How Americans buy gold and precious metals on eBay". In this short entry it was revealed eBay’s gold bullion sales have jumped more than 60% from 2007 through 2010 with “almost half of the silver and gold buyers in the first quarter of 2011 never purchased these items on eBay before.” You can find the article here.

This comes as no great surprise to me as I have tracked activity on eBay for both gold and silver auctions for some time and even included some "ending soon" auctions on both my Gold Investing and Silver Investing web site pages. Only one fact surprised me in that they stated "There are two silver buyers for every gold buyer because silver is so much cheaper." I would have guessed a 5 to 1 ratio or even higher of silver to gold.

I have purchased silver on eBay in the past but never gold. There are two warnings I would give anyone before bidding on an eBay gold or silver auction:

1. It is important to watch the premiums you will be paying before bidding on a coin or lot. The Reuters blog entry mentions a 9% premium over spot gold for a Gold American Eagle. I would shop around before paying a $143.10 premium for that popular coin. To be a smart shopper, you must know the spot gold price before bidding.

2. The blog entry also mentions the potential purchase price of a coin from a "top-rated seller". There are many, many auctions initiated by sellers that are NOT top-rated sellers. So how do you increase your odds of making a safe bid with a reputable seller? Here is what I would look for...

In the upper right-hand corner of each auction page is the seller's basic statistics area that identifies the seller's eBay name (if they are a top-rated seller, it will display that too), the number of transactions (with feedback) and the positive feedback percentage. To see what I'm talking about, go to Gold American Eagle, scroll down to the eBay auctions and click on any auction. If Top-rated seller is not displayed, I would look for several hundred transactions with 100% positive feedback. I would also try to deal only with sellers in my own country. Just keep in mind that only you can decide if bidding on an item is right for you. I take no responsibility for whatever gold purchases you successfully bid on.

For your information, I don't use eBay much for gold or silver purchases. My personal preference is to use: 1) a smaller, local dealer for small purchases; 2) a large, reputable regional or nationwide dealer for larger and/or riskier purchases; 3) eBay auctions if a good deal or "odd" coin pops up that I want; and 4) TV coin show offerings -- in that order.

U.S. Mint totals for July

Here are the final July 2011 and year-to-date totals
for Gold American Eagles:

one-ounce gold eagles - 61,500, year-to-date 569,000;
half-ounce gold eagles - 3,000, year-to-date 58,000;
quarter-ounce gold eagles - 0, year-to-date 64,000;
tenth-ounce gold eagles - 15,000, year-to-date 265,000.

July final number for Gold Buffaloes is 12,000 (YTD - 91,500) and Silver Eagles closed out at 2,968,000 (YTD 25,271,500). With Silver Eagles averaging just over 3,600,000 per month, we could see the 2011 total top 40,000,000 - as long as the silver planchets (blanks) remain available .

Thanks for reading.

Gold Investing - Gold Closing In On $1600

2011-07-15T20:54:00.000-07:00

Going in to the weekend, spot gold is at $1594.10 (another new high). As surprising this may be to those people who haven't followed the 11 year bull market in gold, there are 90 knowledgeable analysts who predict a future where gold will go to $5000 per ounce - or more. There are several names I don't recognize but there are several I do and they are well-respected analysts. See how many you recognize in the article here.

As far as when gold will reach such lofty heights, the opinions differ. Some say yet in 2011, more before the end of 2012 and others all the way out to 2020. Ben Davies (CEO of Hinde Capital) sees a possible big move in the near future here = Gold to Break Above $2,000 in the Next 4 Months. One last thought-provoking article by the well-respected Ambrose Evans-Pritchard can be read at Return of the Gold Standard as world order unravels.

Here are the July 2011 and year-to-date totals (thru 7/15) for Gold American Eagles:

one-ounce gold eagles - 21,500, year-to-date 529,000;
half-ounce gold eagles - 1,000, year-to-date 56,000;
quarter-ounce gold eagles - 0, year-to-date 64,000;
tenth-ounce gold eagles - 5,000, year-to-date 255,000.

These are some low numbers for all Gold Eagles (compared to some previous months) and, with half of July over, it could well turn out to be the lowest month of production so far in 2011. Month-to-date Gold Buffaloes are at 4,000 (YTD - 82,000) and Silver Eagles MTD 1,461,000 (YTD 23,764,500.

Thanks for reading.

Gold Investing - Fractional Gold Coins and You

2011-06-22T19:35:00.000-07:00

No other metal can match the beauty of gold. And no other coin can match the beauty of a gold coin. Yes, coins such as the Silver Eagle and Silver Maple Leaf are pleasing to look at and they are much more affordable than gold coins at current spot prices. But (in my humble opinion) when you compare them with their gold versions or side-by-side with a 24k Gold Buffalo or Austrian Philharmonic, they pale in comparison.

So how can you invest in gold on a silver budget? The answer may well be with fractional gold coins. That is, those gold coins containing less than an ounce of gold. The most popular gold bullion coins (the Gold Eagle, Gold Maple Leaf and Krugerrand) all come in half-ounce, quarter-ounce and tenth-ounce sizes. Let's take a look at the Gold American Eagle...

The Gold American Eagle first appeared in October of 1986. In that year, a total of 1,312,500 one-ounce Eagles were produced. But fractional Gold Eagles had good numbers too. Half-ounce Gold Eagles for 1986 numbered 486,500, quarter-ounce 587,000 and tenth-ounce 852,500. The most affordable Gold Eagle, the tenth-ounce, can be purchased for under $190.00 (at the time of this post with spot gold about $1545.00). There are approximately 11,249,000 tenth-ounce Gold Eagles in existance (1986 thru 2010).

The one drawback to the tenth-ounce gold coins is they are pretty small. You may want to concentrate on coins that are closer to quarter-ounce (or larger). The quarter-ounce Gold Eagle can be purchased for under $440, about the price of a 10 oz silver bar (good luck finding these now), and about 3,218,800 are floating around. I have included a picture of a quarter-ounce Gold Maple Leaf (same approximate size as a quarter-ounce Gold Eagle) to give you an idea of the size of this gold coin compared to a U.S. silver dime.

There are several other fractional gold coins in existance that contain varying amounts of gold content such as the British Sovereign (.2354 gold content), French Twenty Franc "Rooster" (.1867 gold content), Mexican Gold Ten Pesos (.2411 gold content), etc. You can see many more examples in my article Fractional Gold Coins.

Thanks for reading.

Gold Investing - The Shady Side of Gold & Silver Dealers

2011-05-22T21:24:00.000-07:00

The Minneapolis StarTribune (The Strib) recently published an article on various local precious metals dealers and who they have hired as salesmen. And what a sordid tale it is. Ex-cons, druggies, alcoholics, thieves, forgers, bank robbers, fraudsters and more. There are no licensing requirements for men and women employed as sellers of gold and silver - it is up to the owners/management to hire the "right" people for the job. And the companies mentioned in this article (except for Investment Rarities Inc.) have failed miserably.

The Twin Cities appears to be a hotbed of seedy precious metals dealers among the good ones. I would expect most major metropolitan areas would have their mixture of good and bad dealers and maybe mid-size cities too. I was fortunate to work for one of the good dealers (started many years ago and still going strong). A dealer that has been in business several years tends to be more trusted than one only in business for a year or two but that is no guarantee (some of the shady dealers mentioned have been in business since the 1990s).

I am not going to go into detail about the traits of a good dealer - that would require too much space and time (I may tackle that on my Gold Investing Simplified site at a later date). But if I were new to gold investing, here's what I would do. Concentrate on gold bullion coins - both one-ounce coins and less-than-an-ounce (fractional) gold coins. I'm talking Gold American Eagles, Gold Canadian Maple Leafs and South African Krugerrands (and maybe Austrian Philharmonics). Their price is based on the spot price of gold (easily found in several places on the Internet) plus the premium charged by the dealers. Easy to shop around and get the best deal.

The big profits for dealers are in numismatic (rare) coins and one-off gold coins (coins that are not as well known and can be priced higher). If the dealer you chose tries to "push" high priced numismatic coins when you ask for bullion coins, go somewhere else. If they start throwing around terms such as "confiscation proof", more favorable reporting requirements, better price appreciation, blah, blah, blah, go somewhere else. These dealers don't have your best interests at heart. Once you have enough bullion coins in your possession, you can look for select numismatic and semi-numismatic gold coins. I'll discuss that at a later date.

The Strib article I mentioned earlier can be found at Ex-cons make a killing in coins.

Thanks for reading.

Gold Investing - Did the Gold Bubble Burst?

2011-05-08T20:38:00.000-07:00

Gold had what I consider to be a healthy correction last week. It would be worrisome of gold did not take a breather once in a while. When you consider that the price of gold reached record highs on 15 of the 21 trading days in April, the current price drop is welcome.

Nothing has really changed to alter the long term trend of gold's bull market. Is inflation still with us? Yup. Did the massive national debt go away? Nope. How about the ever-increasing money supply? Still going on. Did the financial uncertainty go away? Hardly. The name of the game is asset preservation and gold fits the bill very nicely.

You won't have to search very far to find several "experts" who say gold was in a bubble but this drop is the beginning of the end. These are the same people who hadn't the foggiest idea that gold would be keep rising every year into the second decade of a bull market but they are sure the bull market is now over. Here is an article by an expert you should be listening to. It is by John Hathaway and can be found at Hathaway - Gold & Silver to Explode Again After Consolidation.

At the time of this post, spot gold is at $1502 and change. To put it another way, each dollar in your pocket, billfold or purse is worth 1/1,502 of an ounce of gold.

Here are the April 2011 and year-to-date totals (thru 5/8) for Gold American Eagles:

one-ounce gold eagles - 94,500, year-to-date 411,500;
half-ounce gold eagles - 12,000, year-to-date 46,000;
quarter-ounce gold eagles - 14,000, year-to-date 56,000;
tenth-ounce gold eagles - 40,000, year-to-date 210,000.

Thanks for reading.

Gold Investing - Gold Hanging On To $1500

2011-04-26T21:12:00.000-07:00

Gold is managing to hang on to $1500 at closes for the past few days despite some gyrations during the trading sessions. There are powerful forces that don't want to see gold at this level so for gold to maintain $1500 and above gives you and idea of the strength of the bull market.

Here is an article by the highly respected Richard Russell that talks more about the opposing forces in the pricing of gold. You can read it at Russell endorses gold manipulation thesis. Here is another series of quotes from Richard Russell regarding the strength of the gold bull market. It comes from King World News and is titled "Richard Russell - The Great Gold Tsunami Lies Ahead". You can read it here.

One last article I want to share with you is by Jim Willie. Like Mr. Russell, Mr. Willie doesn't mince words about the price of gold and the strength of the gold bull. His article is titled "50 Factors Launching Gold" and can be found here.

At the time of this post, spot gold is at $1508.20, up $78.00 for the last 30 days and $355.20 (or 30.81% for the last year.

Thanks for reading.

Gold Investing - Gold Knocking On $1500's Door

2011-04-17T18:39:00.000-07:00

Here are the mid-April 2011 totals for Gold American Eagles:

one-ounce gold eagles - 46,500, year-to-date 310,000;
half-ounce gold eagles - 1000, year-to-date 22,000;
quarter-ounce gold eagles - 2,000, year-to-date 40,000;
tenth-ounce gold eagles - 15,000, year-to-date 175,000.

All of the fractional Gold Eagles (half, quarter and tenth-ounce coins) are way down from the previous two months. The mid-April number for one-ounce 24K Gold Buffaloes stands at 10,000 and for Silver American Eagles 1,421,000.

Gold was up almost $30.00 for the two days ending last Friday. Spot gold is at $1486.50 at the time of this post - can $1500 be far away? Gold is up $84.50 in the last 30 days with a one-year change at $327.20 (+28.24%). These stats courtesy of Kitco.

I have two gold-related stories to share with you. The first is titled "Where Is America's Gold: The Mystery of Ft. Knox". This is an interesting read, especially since it includes the U.S. Government's Status Report Of U.S. Treasury-Owned Gold dated January 31, 2011. I didn't know that this report is issued every year by the Department of the Treasury. You can read the entire article here.

The second article comes from the UK's The Telegraph and is titled "Why record gold price is good news for burglars and bad for householders". It talks about the dangers of being underinsured if several gold jewelry pieces are kept in the home (this would also apply to gold coins and bars). Household insurance policies have low maximum limits on what they will pay in case of a loss. With gold setting new highs, many homeowners may now be underinsured and not even know it. This a British newspaper but the message applies to many Americans too. You can read all about it here.

Thanks for reading.

Gold Investing - March 2011 Totals For Gold Eagles

2011-04-04T21:24:00.000-07:00

Here are the final March 2011 totals for Gold American Eagles:

one-ounce gold eagles - 60,500, year-to-date 263,500;
half-ounce gold eagles - 8000, year-to-date 21,000;
quarter-ounce gold eagles - 20,000, year-to-date 38,000;
tenth-ounce gold eagles - 40,000, year-to-date 160,000.

Also in March, 38,000 one-ounce 24K Gold Buffaloes were produced as well as a rather small 2,767,000 Silver American Eagles.

Spot gold is at $1436.00 at the time of this post. Gold is up $3.20 in the last 30 days with a one-year change at $305.20 (+26.99%).

I have one gold-related article you may be interested in. As you probably know, the U.S. Mint has had problems keeping up with the demand for gold and silver bullion coins. In an article titled "Ron Paul to Probe U.S. Mint Coin Shortage" mention is made of an April 7th meeting to address this very problem. It appears another source for providing blank planchets to the U.S. Mint has been identified so this hopefully will help solve the problem. The article also mentions: 1)The Coin Modernization, Oversight and Continuity Act of 2010 which gives the U.S. Mint more flexibility in meeting the bullion coin demand (and the demand for gold and silver numismatic pieces); and 2) The Free Competition in Currency Act of 2011 whose purpose is to repeal legal tender laws in order to prohibit taxation on gold, silver and a few other precious metals. You can read the entire article here.

Here is another story that made headlines in the last few days. Gold, silver coins now officially legal tender in Utah. Utah's state tax code now that permits the use of gold and silver as legal tender for commerce within that state as long as they came from a U.S. Mint. This means no capital gains or other state taxes will be levied when the coins are exchanged. But the gold and silver coins are still only worth their face value despite spot gold over $1400 per ounce and spot silver over $38 per ounce. You can read more here.

Thanks for reading.

Gold Investing - Storing Your Gold (and Silver)

2011-03-20T19:48:00.000-07:00

If you have physical gold and silver in your possession and are concerned about safeguarding it, there is a well written article that I consider a MUST read. In the article, the author talks about a friend of his that was robbed of some gold coins and is mighty upset about it. Especially since: 1) he suspects it was an "inside job"; and 2) there isn't a darn thing he can do about it because he can't prove a thing.

The author then goes on to list the three most common places to store gold along with some considerations for each. The article is titled "Robbed", the author is Jeff Clark and you can read the article at Safely Storing Your Gold. You will have to scroll down a bit as the article isn't at the top.

In a related article by the same author, readers provide input and suggestions on storing gold and silver (after reading "Robbed") on which the author provides useful comments. This is good information and might save you a heartbreaking loss down the road. The article is titled "Think Like a Thief" and you will find it here. Again, you will have to scroll down to find the article.

At the time of this post (Sunday evening) spot gold is up $8.00 at $1427.70. Spot silver is up $0.53 at $35.81. It should be an interesting week.

Thanks for reading.

Gold Investing - Over $8000 For An Ounce Of Gold?

2011-03-13T19:55:00.000-07:00

The U.S. Mint appears to be taking a bit of a breather lately in producing one-ounce Gold and Silver Eagles. Here are their stats 13 days into March:

one-ounce gold eagles - 30,500 so far in March (vs. 130,500 in Jan., 72,500 in Feb.);
one-ounce silver eagles - 717,000 so far in March (vs. 6,422,000 in Jan., 3,240,000 in Feb.);

Spot gold is at $1421.30 at the time of this post - helped along by the unfolding tragedy in Japan. Gold is up $64.50 in the last 30 days with a one-year change at $319.80 (up 29.03%).

In a recent blog post, James Turk (GoldMoney founder) says he thinks gold will eventually be much higher than $8,000. In the article he states "you are not going to sell your gold; you're going to spend it. In other words, gold will once again become currency." The link to this short piece is at $8000 gold. If you have some physical gold in your possession, that may sound really great. But what kind of world will we live in if gold goes over $8000 an ounce? Will a loaf of bread be $10? A gallon of gas $15? Will it be safe to leave your home? You know the old saying, "Be careful what you wish for...".

Regarding my encounter with the Gold ATM in Las Vegas, I have a few more pictures to share with you. My previous post mentioned my purchase of a 2.5 gram pure gold bar for $139. With spot gold at $1421.30, that bar is now worth $114.24. Gold will have to rise to a little over $1700 per ounce before I break even. My purchase was prompted more about sharing my experience with you - not making a killing on it. I knew it wasn't going to result in a "good deal" and the 8+% tax didn't help any. But I didn't bet the farm at $139. This points out the importance of doing a little arithmetic before making any gold or silver purchase. Knowing the spot price beforehand is most important. You can find the current spot prices at spot silver price and spot gold price.

Thanks for reading.

Gold Investing - The Gold ATM At The Golden Nugget

2011-03-04T20:03:00.000-08:00

On my short trip out west, I was able to get a close-up view of the Gold to go gold dispensing machine located in the Golden Nugget in downtown Las Vegas. If you are wondering if I tried it out, the answer is YES but only with a small purchase.

My first impression was "it looks a little like a gold pop machine". The selection of bars/ingots or bullion coins is made in the top window, cash is inserted in the lower right slot, the piece(s) purchased drop into the bottom tray (in a black box(es)) and a receipt is printed above.

I decided to purchase a 2.5 gram gold bar which is pretty small but the one-gram bar was much too small for me to appreciate. Since a troy ounce contains 31.103 grams, this small bar is about .08 of a troy ounce. Spot gold was about $1388 at the time and I paid $139 for this bar. This included a county tax of over 8%. Was this a good investment? Only time will tell. Maybe that $139 would have been better spent in the Game King slot machine to the left.

It will be interesting to see how many of these Gold ATMs get installed in the U.S. This is only the second to land on our shores (the first is in Boca Raton, FL) and I don't see this technology taking off here (but I could be way off base - where this is preferred over making gold purchases from a reputable dealer). No mention on when or where a third, fourth or fifth might appear.

Gold is sitting pretty going into the weekend. Spot gold is at $1432.80, up $17.50 for the day and $97.80 (7.33%) in the last 30 days. Silver is on a tear too, spot silver is at $35.67. Up 25.82% in just the last 30 days. The "poor man's gold" is predicted to hit $50 before the year is out.

Thanks for reading.

Gold Investing - Gold Prices Up (And Why Not)

2011-02-22T16:45:00.000-08:00

I am writing this post from Laughlin NV - a wise decision to escape the winter weather of the upper mid-west for a few weeks. While in Laughlin, I attended a local coin dealers show. There weren't a lot of dealers there but the ones that were had impressive inventories of coins with silver far outweighing gold coins. I visited Las Vegas and got a closer look at the Gold ATM. More on that in my next post when I can include a few pictures.

Gold prices are on the rise and why not? I haven't seen the world in such a mess as it is now. As of this post, spot gold is at $1396.30, up $54.00 in the last 30 days and $283.80 in the last year. With all that is going on, it's a wonder it is still this low. Maybe waiting for you to make another purchase before taking off to $1500.00.

If gold is not within your budget, take a close look at silver. The coin show I referred to earlier had lots of Silver American Eagles and Morgan Silver Dollars but they weren't cheap. The premium on these silver bullion coins are high because they are so popular. If you find it the same, try going for some Franklin Half-Dollars, Washington Quarters (1964 and earlier) or even Kennedy Half-Dollars of 40% silver. The ways things are going, they could turn out to be a good investment.

Thanks for reading.

Gold Investing - "Don't Buy Gold Maple Leafs"

2011-02-08T21:16:00.000-08:00

I was reading an article the other day in which the author stated a precious metal dealer told him not to invest in Gold Canadian Maple Leafs as they scratch too easily. That is true and is good advice but only if you don't know how to handle gold coins (whether pure gold or not). He might as well have added Gold American Buffaloes, Austrian Gold Philharmonics, Gold Chinese Pandas and Australian Gold Nuggets as these are pure gold also.

Why deprive yourself of owning some of these beautiful coins when by just taking some basic precautions, you won't have to worry about marring their appearance. If your coins are not slabbed or encased in plastic, you will want to handle them by the edges only (if you need to handle them at all) and kept in some sort of protective plastic when stored. The only time I slightly scratched a Gold Maple Leaf was in putting one back in a multi-coin plastic tube at a slight angle and the edge touched the coin below it. I didn't do that again.

Some Gold Maple Leafs can be purchased encased in a plastic holder which then rests in a red case (pictured). With at least one purchase, I was offered the red case option at no charge and took it. You may want to ask your dealer if that is something available to you if you purchase one or a few Gold Maple Leafs.

Thanks for reading.

Gold Investing - Gold Prices Get A Haircut

2011-01-29T21:20:00.000-08:00

Gold prices went to the barber shop on Thursday (1/27) and got a real good clipping. The next day the price recovered much of that drop (up $23.50) so that going into the weekend that scalp job turned out to be more of a medium trim. The unrest in Egypt and nearby countries had a large part in the action but other factors are at work.

The action in the paper gold transactions does not begin to reflect those of the physical gold market. The interest in physical gold in many parts of the world is strong but you would never know that by just following the day to day fluctuations in the gold prices. There are games being played. Reminds me of that Joe South hit of the late '60's Games People Play .

Many experts are still very bullish on gold and don't believe it is even close to being in a bubble. One such highly-regarded expert is Eric Sprott. In this King World News Blog entry, he talks about a gold price approaching $2150 this spring. You can read this short comment here.

One last reading I found interesting talks about Herbert Hoover Obama. This not a political statement on my part but it may get you thinking about where gold may fit in your future.

Thanks for reading.

Gold Investing - New YouTube Video On Investing In Gold

2011-01-20T21:34:00.000-08:00

In my last post, I mentioned working on a video soon to be released. I finally finished it (after a longer-than-anticipated learning effort) and uploaded it to YouTube last Monday. It is titled "Investing In Gold - 3 Popular Gold Bullion Coins". You can see it here Investing In Gold

The video provides some basic but useful information on the South African Krugerrand, Gold Maple Leaf and Gold American Eagle. It is mainly of benefit to those who don't know much about gold bullion coins (the vast majority) as opposed to the sophisticated investor. I hope you enjoy it. I have more planned on both gold and silver and will let you know when they go "live".

Gold took quite a beating today and is currently at $1345.90. If you are keeping the faith, it might be a good time to pick up some fractional gold coins such as the quarter-ounce or tenth-ounce Gold Eagles or Maple Leafs. Or for something a little different, there are British Sovereigns (.2354 troy ounces of gold) or the French Twenty Franc "Rooster" (.1867 troy ounces). These are also very liquid and make good investments.

Thanks for reading.

Gold Investing - Gold Eagles At The Start Of 2011

2011-01-12T20:17:00.000-08:00

This post is later than planned but I have been busy putting the finishing touches on a video which will soon be ready for uploading to the major video sites. Stay tuned for more details.

Here are the January totals for Gold American Eagles as of 1/12/2011:

one-ounce gold eagles - 42,500 so far in January, 42,500 year-to-date;
half-ounce gold eagles - 0 so far in January, 0 year-to-date;
quarter-ounce gold eagles - 0 so far in January, 0 year-to-date;
tenth-ounce gold eagles - 10,000 so far in January, 10,000 year-to-date.

Spot gold is at $1387.10 at the time of this post. Gold is up just $1.30 in the last 30 days with a one-year change at $236.40. After a suspiciously slow December for Silver Eagles, the U. S. Mint reported production of 3,407,000 so far with a lot of January to go.

I have one gold-related article you may be interested in. Titled "Gold Price Rises 29.8% in 2010 to End a Stellar Decade", it has an interesting table showing the annual change in gold's rate of exchange this decade against nine major currencies. You can read it here.

And finally, the second Gold Dispensing ATM has been installed in the U.S. - where else but at the Golden Nugget in Las Vegas. If you are downtown Vegas and want to see it for yourself, it is reported to be near the "Hand of Faith" gold nugget which GN Las Vegas has had on display for some years. I hope to have a picture of this ATM in a few weeks.

Thanks for reading.

Gold Investing - Year End Totals For Gold Eagles

2011-01-01T22:00:00.000-08:00

Unless the U. S. Mint "tweaks" the numbers in early January, 2011, here are the December and 2010 Year-End totals for Gold American Eagles:

one-ounce gold eagles - 58,500 total for the month, 1,143,500 for the year;
half-ounce gold eagles - 1,000 total for the month, 46,000 for the year;
quarter-ounce gold eagles - 2,000 total for the month, 62,000 for the year;
tenth-ounce gold eagles - 5,000 total for the month, 390,000 for the year.

Unofficially, for 2010 gold is up $325.20 for a 29.66% gain. The poor man's gold has had a very good year too. Silver is up $14.04 for the year - a gain of 83.22%. Both metals are predicted to do well in 2011.

I have been reworking the fractional gold coins page on my Gold Investing Simplified site and have added several more coins. You can see the changes at Fractional Gold Coins. I have also started to expand the Glossaries on both my gold and silver sites and will be adding more in 2011. You can see them at Gold Investing Glossary and Silver Investing Glossary.

Thanks for reading.

Gold Investing - 1st U.S. Gold Dispensing ATM

2010-12-18T21:43:00.000-08:00

I have been following the progress of the Gold Dispensing ATMs since they were first introduced earlier this year. It appears they have been successful and now it's the U. S. that is getting in on the action. The first U. S. Gold Dispensing ATM was installed in Boca Raton, Florida on Friday, 12/17/10.

The article mentions the availability of different-sized bars and coins but other than a two-gram piece, doesn't mention what other sizes are available. I would guess the offerings would include gold in full troy and fractional troy ounces as well as various gram sizes such as two, five and 10 gram pieces (a troy ounce contains 31.103 grams). The article can be found here Gold ATM and there is a video on Youtube that you can view here Gold ATM Video.

If you want to get an idea of what these various sizes look like, I have a six-page PDF I can send to your E-Mail address. If interested, send me an E-Mail with "Gold Bar PDF" in the Subject Line and it will shortly appear in your Inbox. You can find my contact information here Gold Investing Contact Us.

Thanks for reading.

Gold Investing - Gold Up $150 In Next Five Weeks?

2010-12-11T20:21:00.000-08:00

King World News is a site I visit a lot for their most interesting interviews and articles. A recent blog entry caught my eye "KWN Source - Gold Will Move $150 Higher Within 5 Weeks". According to what King World News considers a reliable source, Asian buyers are now controlling the gold and silver markets because of their massive buying. This short article and daring prediction can be found here.

Another article I spotted was in the Financial Times, London on Thursday 12/9 stating sales of the popular British Gold Sovereign by the UK's Royal Mint have surged 400 percent from last year with November being the single biggest month in their (1,000-year) history. While not as popular as other gold bullion coins (such as those "discovered" in the gold pan above), the gold sovereign is a good investment. Each coin contains .2354 troy ounces of gold with a purity of .9167.

Thanks for reading.

Gold Investing - November 2010 Gold Eagle Sales

2010-12-02T20:12:00.000-08:00

Here are the November and year-to-date totals for Gold American Eagles:

one-ounce gold eagles - 107,500 total for the month, 1,084,500 year-to-date;
half-ounce gold eagles - 6,000 total for the month, 45,000 year-to-date;
quarter-ounce gold eagles - 4,000 total for the month, 60,000 year-to-date;
tenth-ounce gold eagles - 5,000 total for the month, 385,000 year-to-date.

Spot gold is at $1389.80 at the time of this post. Gold is up $32.30 in the last 30 days with a one-year change at $175.00. Silver is still on a tear - up 49.61% in a year. The U. S. Mint reported production of 4,260,000 in November! The most of any month in 2010.

Here a few gold-related articles you may be interested in. The first appeared in the New York Times on 11/25. Titled "Gold Fever: Pondering The Causes", you can read it here.

The second is by James Turk (Free Gold Money Report) titled "The precious metals power higher". In it he states "When gold and silver eventually become overvalued at some future date, you won’t “sell” your metals; you will “spend” them. You can find this interesting article here.

Thanks for reading.

Gold Investing - Buying Gold On eBay

2010-11-24T21:38:00.000-08:00

If you have some funds to invest in gold, you might want to take a look at eBay from time to time. You may be able to find some nice gold bullion coins at a decent price.

Right now I am looking at a tenth-ounce Krugerrand I spotted in the eBay listings on my web site at Krugerrands. The current bid price is $153.86 with 14 bids so far. The auction still has over 12 hours to go so the sale price could easily go higher. But there is one red flag which would prevent me from bidding on this gold bullion coin. The seller only has one transaction with feedback.

If you see an auction you want to bid one, look in the upper right-hand corner under Seller Info. What you want to see there are a high number of transactions (at least several hundred) with a very high percentage of positive feedback - high nineties would be ideal. This is no 100% guarantee but the odds are greatly in your favor if you take these precautions before bidding.

Good investing.

Gold Investing - Gold Taking Some Hits

2010-11-16T18:39:00.000-08:00

Gold has been having some bad days since my last post. Spot gold is at $1333.30 per troy ounce, with a 30 day change of minus $35.60 and a one year change of plus $193.50. So is it time to sell and take what profits we can? Not to panic, this is not an unexpected event. An interesting article that discusses this drop by Jordan Roy-Byrne is titled Downside Targets for Gold and Silver. It's a short read (with charts) and you can read it here

Gold Eagles, at mid-November, are as follows: 49,000 one-ounce eagles produced so far this month; 4,000 half-ounce eagles; 2,000 quarter-ounce eagles and 5,000 tenth-ounce eagles. A total of 52,000 ounces of gold have been used for the Gold Eagle program so far in November and 1,100,500 ounces for the year.

Thanks for visiting.

Gold Investing - Gold At $1400, Now What?

2010-11-08T20:51:00.000-08:00

Today gold hit the much anticipated $1400 per troy ounce. How high can it go from here? With all the turmoil going on in the world, I am seeing some knowledgeable precious metals experts predicting $1600 by year end, $2500 in 2011 or 2012 and even higher prices than that. Who can tell but the momentum is solidly up at this time. Spot gold is at $1410.70 at this moment.

I came across an interesting article written today by David Levenstein titled "Gold Prices Continue to Soar on the Back of a Declining US Dollar". In it are quotes from some noteable experts plus a picture of the infamous ZIMBABWE ONE HUNDRED TRILLION DOLLAR NOTE which wouldn't even buy a loaf of bread. You can read the article here.

From the U.S. Mint: Gold Eagles after the first week in November are 11,500 one-ounce eagles, 500 half-ounce eagles and 500 quarter-ounce eagles produced. Surprised there are no tenth- ounce eagles yet as these are popular and the most affordable.

Thanks for reading.

Gold Investing - October 2010 Gold Eagle Sales

2010-11-03T20:57:00.000-07:00

For those interested in how well the Gold American Eagle sales have done both in October and year-to-date, here are the totals:

one-ounce gold eagles - 86,500 total for the month, 974,000 year-to-date;
half-ounce gold eagles - 3,000 total for the month, 39,000 year-to-date;
quarter-ounce gold eagles - 2,000 total for the month, 56,000 year-to-date;
tenth-ounce gold eagles - 25,000 total for the month, 380,000 year-to-date.

Spot gold is at $1356.50 at the time of this post. Not too bad considering it had a $40 swing today (from a $1325.00 low to a $1365.60 high). Gold is up $41.50 in the last 30 days and $272.20 for the year.

I don't rule out gold taking a substantial hit in the near future but the long term direction is up so keep the faith.

Thanks for reading.

Gold Investing - Gold Takes A Hit

2010-10-27T19:19:00.000-07:00

Hello,

A few posts ago (when gold was up over $20.00 on the day), I stated there would be more days like this - both up and down. Well, down has been the recent trend but it is not time to bail or panic. Gold's 30 day change still shows a $31.80 gain and up $286.80 in the last year. Spot gold is at $1326.40 at this writing.

Demand for physical gold is still strong. Latest U.S. Mint reports for October are as follows: 86,500 one-ounce Gold Eagles produced; 3,000 half-ounce Eagles; 2,000 quarter-ounce Gold Eagles; and 25,000 tenth-ounce Eagles which amounts to 91,000 troy ounces of gold consumed for the Gold Eagle program so far this month. My next post will give you the "final" October totals as well as the year-to-date totals.

Thanks for reading and keep the faith. JA

Gold Investing - Mid-October Gold Eagle Sales

2010-10-18T21:39:00.000-07:00

Here are the latest figures from the U.S. Mint on Gold American Eagle sales for October with the month about half over: 54,500 one-ounce Gold Eagles produced; 3,000 half-ounce Eagles, zero quarter-ounce Gold Eagles and 20,000 tenth-ounce gold coins.

A couple of recent articles I came across regarding gold for your consideration:

Jim Clark wrote an interesting article on the future availability of gold titled "Gold, Get it While You Can" which you can see here;

Peter Schiff has provided an article by the Aden sisters (Mary Anne and Pamela) who are quite knowledgeable on the gold market. This piece is titled "Gold: Strong Bullish Action" which you can read here;

Last are a few comments by Richard Russell considered the Godfather of newsletter writers. His insightful comments, "Wild Speculation in Gold Lies Ahead" can be found at the King World News site here.

Thanks for stopping by.

Gold Investing - Gold Up $20 Today

2010-10-13T21:03:00.000-07:00

As I write this post, the spot price of gold stands at $1377.50 - up over $20 from where it started the day. In the last 30 days, an ounce of gold has risen $132.50 or 10.64% (up 29.45% in a year). With everything going on that can affect the price of gold, there are going to be more twenty+ dollar days - both up and down. A price correction is due.

Here is an interesting article that you may want to take the time to read. Written by Greg Hunter, it is titled "Record High Gold all about Fear" and you will find it here

I will have another post in a few days giving you the mid-month totals for Gold American Eagles.

Thanks for stopping by.

Gold Investing - Another New High For Gold

2010-10-05T19:34:00.000-07:00

The spot price of gold reached another new high today of $1344.10 before dropping back a bit. The price is currently at $1342.50 -a very nice gain for the day. Predictions of where it goes from here is all over the board. Some say it's a bubble ready to burst while Jim Rogers said he sees gold at $2000 in the years ahead.

A few gold articles I came across that you might find of interest:

#1 Have Central Banks Lost Control of the Gold Market by Julian D. W. Phillips can be found here

#2 Gold and Silver - It Could Well Be a Whole New Ballgame! by Peter Degraaf is here

Gold totals from the U. S. Mint for September are as follows: 82,500 one-ounce Gold Eagles, 2,000 half-ounce Gold Eagles, 6,000 quarter-ounce Gold Eagles and 30,000 tenth-ounce Gold Eagles which "used up" 88,000 ounces of gold for the month.

Happy Investing!

Gold Investing - Say Goodby to 2010 Gold Buffaloes

2010-09-26T19:05:00.000-07:00

The U.S. Mint has decided to stop producing one-ounce 24-K gold buffalo bullion coins for the rest of 2010. So the total gold buffaloes for 2010 are locked in at 209,000 coins. With the price per troy ounce of gold hovering around $1300.00, you may want to look at other gold bullion coins with a lower premium. Also don't ignore silver bullion coins which are much cheaper even though silver is at 30 year highs.

And now an update on gold bullion coins from the U.S. Mint as the end of September 2010 approaches -58,000 one-ounce gold eagles, 1000 half-ounce eagles, 2000 quarter-ounce gold eagles and 20,000 tenth-ounce gold eagles.

Happy investing.

Gold Investing - 3rd Largest Gold Nugget

2010-09-12T20:53:00.000-07:00

It was reported that the third largest gold nugget in the world was discovered a few weeks ago in Australia and it is a sight to behold. Weighing 23.26 kilograms, the intrinsic value of this nugget is approximately $860,000 based on the current spot price of gold. But nuggets this rare would fetch a much higher price. You can see a picture of this gold nugget here.

The largest gold nugget on display is the Hand of Faith gold nugget also found in Australia in 1980. If you visit Las Vegas, you can see this gold nugget at the Golden Nugget Hotel and Casino (they purchased it in 1982) with a replica at the Golden Nugget Laughlin. Below is the picture I took of the Hand of Faith a few years back.

An update on gold bullion coins from the U.S. Mint so far in September 2010...
16,500 one-ounce gold eagles, 1000 half-ounce eagles, 10,000 tenth-ounce gold eagles (no quarter-ounce gold eagles produced so far this month) and 3500 24k gold buffaloes.

Happy investing.

Gold Investing - August 2010 Gold Eagle Sales

2010-08-31T20:28:00.000-07:00

Here we are at the last day of August and the Gold Eagle totals are in for the month. One-ounce Gold Eagles came in at 39,000 for the month and 805,000 Year-to-Date. Half-ounce eagles were 1,000 for the month and 34,000 YTD. Quarter-ounce eagles totaled 2,000 and 48,000 YTD. The popular and more affordable tenth-ounce Gold Eagles were 15,000 for August and 325,000 so far in 2010. Even though the smaller coins have a higher premium, they appear to be within many people's budget.

On this day when the Dow Jones Industrial Average recorded their worst August since 2001, the FDIC reported the "new" number of problem U.S. banks has grown to 829 and Ron Paul (and others) are curious as to how much gold is really stored at Fort Knox and the New York Federal Reserve Bank (since no audit has been done since the 1950's), I hope you are doing some serious precious metal investing.

Gold Investing - Fort Knox Gold

2010-08-24T21:56:00.000-07:00

I came across an interesting article regarding how much gold really remains in Fort Knox. It talks about the only audit that has ever been done of the gold inside Ft Knox. It was done days after Dwight Eisenhower became President in January of 1953. If you are interested in that sort of thing, you can read about it Here.

With about one week to go until August end, here are the totals for U.S Mint production so far: 37,500 one-ounce Gold Eagles, 500 half-ounce Eagles, 500 quarter-ounce Eagles and 1,500 tenth-ounce Eagles. Also 15,000 24K Gold Buffaloes and 1,656,000 Silver Eagles.

I will be back next week with the final August totals.

Happy investing.

Gold Investing - Four Ways To Invest

2010-08-18T20:39:00.000-07:00

A recent article posted on TheStreet web site, discussed four ways to invest in gold: Physical gold (bullion and coins), Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs) and shares in gold companies. If you are interested in the details, the article can be read here.

There is a difference in investing in gold and actually owning gold. The only way to really own gold is with the first option - buying physical gold. Some investors are under the impression that investing in an ETF is another way to "own" gold but that is false. Or owning shares in a gold company is owning gold. That is false too. Don't make the same assumptions that these investors make or you will be disappointed if you decide to take possession of the gold you think you "own".

Happy investing.

Gold Investing - Gold Eagles For July 2010

2010-08-03T21:12:00.000-07:00

I wanted to share with you the totals for Gold Eagles for July: 152,500 ounces worth of gold eagles were sold which consisted of 147,500 one-ounce coins, 1000 half-ounce coins, 500 quarter-ounce coins and 3000 tenth-ounce coins. Regarding the 24k Gold Buffaloes, 23,000 were produced for the month. For Silver Eagle fans, 2,983,000 was the total for July.

I was alerted to a report by John Hathaway who is associated with Tocqueville Asset Management L.P. The report is 6-pages in which Mr. Hathaway lays out the case for gold bullion (and gold-related equities) in a world dominated by fiat currencies. Also discussed are the threats of a deflationary implosion AND a hyperinflationary explosion. If you are interested in such things, the report is Here

Gold Investing - Mid-July Gold Eagle Numbers

2010-07-18T21:32:00.000-07:00

Here are the sales numbers for Gold American Eagles as of mid-July: One-ounce Gold Eagles = 66,500 (683,500 year-to-date); half-ounce Gold Eagles = 1000 (32,000 YTD); quarter-ounce Gold Eagles = 0 (44,000 YTD); and tenth-ounce Gold Eagles = 30,000 (310,000 YTD). As far as 24k Gold Buffaloes, 16,000 have been sold so far in July.

Again a reminder for why you want to own some gold - since 1913 until 2001, the U.S. dollar has lost 96% of its purchasing power (according to the U.S. Department of Labor). If the past recessions and depressions are reviewed, the gold price has moved opposite to the purchasing power of the dollar. With this history as a guide, it means the lower the dollar goes, the more gold rises in value.

I hope you are planning accordingly.

Happy investing.

Gold Investing - Gold Eagles Mid-2010

2010-07-06T21:17:00.000-07:00

I want to share the total Gold American Eagles that have been produced so far now that 2010 is half over. A total of 673,000 ounces of gold have been "consumed" in support of the Gold Eagle program. All but 54,500 ounces were used for the popular one-ounce Gold Eagle.

The U. S. Mint resumed production of fractional Gold Eagles in June, 2010. So far, 31,000 half-ounce, 44,000 quarter-ounce and 280,000 tenth-ounce Gold Eagles have been produced in 2010. Due to the price of gold, the tenth-ounce coins have been popular. YTD 24-K Gold Buffaloes stand at 160,500.

Happy investing.

Gold Investing - Krugerrand Premiums

2010-06-22T21:27:00.000-07:00

In my articles on Krugerrands and Basic Gold Investing, I mentioned that Krugerrands could be purchased for a little less premium than other popular gold bullion coins. At the time I wrote those articles, this was true. But due to major events happening in the world, it is no longer the case.

Disruptions with the Euro have caused the citizens of many European countries to turn to gold as a sound investment. And the Krugerrand has been the gold investment of choice. It has been said that the Rand Refinery (the sole producer of South African Krugerrands) is working around the clock to keep up with demand.

So if you go shopping for Krugerrands, don't expect to find any deals. This turn of events makes it more important than ever to shop around among major dealers in order to pay the lowest premium possible on this popular gold bullion coin.

Gold Investing - Premiums vs. Ripoffs

2010-06-14T20:02:00.000-07:00

A major gold dealer is taking some heat for the premiums it is charging on recommended coins that has caught the attention of others including a Congressman. Here are the details as I understand them:

The dealer (who will go unnamed) has been accused of charging premiums that are way too high for the coins in question. The example given was the sale offer of a French Twenty Franc "Rooster" for a quoted price of $402 by one of the firm's salesman. Now the Rooster contains .1867 troy ounces of gold. You can find this information from various online sites including my site at Fractional Gold Coins

At the time of this writing, spot gold is at $1220.90. The result of multiplying $1220.90 by .1867 is $227.94. Unless there is something really special about the Roosters this firm is selling (highly unlikely), the (melt) value of this gold bullion coin is $227.94. At a sale price of $402, the premium being charged is $174.06 or approximately 76 percent! Now spot gold may have been a little higher making the value of the Rooster a little more but this is a classic ripoff.

There are lessons to be learned from this if you are actively investing in gold:

1. Just because you are dealing with a large dealer, don't assume they are ethical. And don't be fooled by celebrity endorsements. You must do your own homework.
2. Get familiar with the gold coins you are interested in. Know their gold content. Know what factors may cause a particular coin to be (fairly) priced higher such as rarity.
3. Get the current spot price of gold before you start talking with any dealer.

Happy investing.

Gold Investing - Gold Eagles May 2010

2010-06-01T20:35:00.000-07:00

The totals for one-ounce Gold American Eagles are in as of the end of May 2010. The U.S. Mint reported 190,000 Gold Eagles were produced in May making the year-to-date total 521,500. And speaking of U.S. gold bullion coins, 70,500 24k-Gold Buffalo coins were produced in May. In the two months the U.S. Mint has been producing this coin, the total sales are already at 127,000. How many more months the Gold Buffaloes will be produced are anybody's guess. They seem to run out of blanks much too fast.

American Silver Eagles for May were 3,636,500 - a huge number but short of the four million mark. Year-to-day, Silver Eagles sales stand at 15,167,500. The U.S. Mint is pumping out over three million Silver Eagles a month!

It appears that gold and silver are finally being "discovered" by greater numbers of Americans. Hopefully you have some in your possession.

Gold Investing - What Price Gold?

2010-05-27T20:36:00.000-07:00

In 1980, the price of an ounce of gold reached approximately $850 per ounce. Very recently, gold has been setting record highs just shy of $1250 per ounce. But adjusted for inflation, is that about where gold should be? NO, it should be priced at $2266.32 per ounce.

So where did this figure come from? If you go to the Minneapolis Federal Reserve's web site at MplsFed you will see an inflation calculator in the upper right hand corner titled "What is a dollar worth?" By plugging in 1980, $850 and 2010 you will see that the Fed calculates the $2266.32 figure. Using the figures for silver of 1980 $50 and 2010, silver should be priced at $133.31 per ounce. Looks like we have a ways to go with both metals!

Happy investing.

Gold Investing - Gold Eagles Mid-May

2010-05-19T09:34:00.000-07:00

So far, Gold Eagles are doing just fine for demand just after mid-May. Latest U.S. Mint figures for Gold American Eagles are 92,500. The 24-karat Gold Buffaloes are doing nicely too (now that they are available again) at 55,000.

Of course, Silver Eagles are leading the pack because "the poor man's gold" is much more affordable than the lofty prices seen for gold. Silver American Eagles are at 2,456,000 so far in May and set for breaking more records for the year at this rate.

Be sure to shop around for the lowest premiums as it will be worth the time you spend doing this.
Happy gold (and silver) investing.

Gold Investing - Demand Stays High For Gold American Eagles

2010-05-09T22:21:00.000-07:00

May is turning into another busy month for the U.S. Mint. Monthly totals for one-ounce Gold American Eagles is already at 41,500 through May 7th. Compare that to the 60,500 one-ounce Gold Eagles produced for the entire month of April. 24-karat Gold Buffaloes are back in production again with totals of 28,500 so far in May.

With gold at around $1200 per ounce, silver (the poor man's gold) is enjoying high demand also. Production of Silver American Eagles stands at 892,000 for the month of May so far. The end of May totals for all of these bullion coins should be interesting. Stay tuned for more U.S. Mint figures.

Gold Investing - Gold Bullion Bars

2009-10-13T10:50:00.000-07:00

Gold bars are highly prized by gold investors in many parts of the world (unlike in the U.S. where investors tend to favor gold coins). Gold bars have the advantage of lower premiums (the amount you pay over the spot price of gold) than those of gold coins but with both investments, the smaller the piece of gold, the higher the premium.

Standard gold bars are manufactured in oval, round and rectangular shapes in sizes denominated in grams, troy ounces, taels, tolas, bahts and more. Almost all have a gold purity or fineness of 999.9. Gold bars from all legitimate refiners will have a hallmark stamped on their surface containing such things as the refiner's name, logo, bar weight and purity.

If you decide to invest in gold bars, make sure to look for hallmarks of well-known refiners. Some of these are: Credit Suisse, Valcambi, Pamp and Argor-Heraeus from Switzerland; Commerzbank and Heraeus from Germany; Tanaka from Japan; Rand Refinery from South Africa; and Engelhard in the U. S.

Gold Investing - Semi-Numismatic Coins

2009-09-22T21:10:00.000-07:00

Unlike rare and high-priced numismatic coins, semi-numismatic coins are not as rare, not as high of grade and can usually be purchased for quite a bit less. The value of semi-numismatic coins are based on their bullion content, their scarcity, condition and collector/investor demand. The advantage of owning these coins are their up-side potential over bullion coins in a rising gold market such as we have today.

You can get some beautiful old coins that are lightly circulated (in grades such as AU, XF or VF) or lower grades of uncirculated coins (in Mint State grades of MS-60 to MS 62). These include old U.S gold coins such as the Liberty (1850-1907), St. Gaudens (1907-1933) and fractional Indians (1907-1933). You will find that semi-numismatic coins such as these are widely recognized, fairly easy to obtain and highly liquid making them a good investment.

Gold Investing - Numismatic Coins

2009-09-17T22:21:00.000-07:00

Numismatic coins are coins that are priced according to a number of factors such as: rarity, uniqueness, condition, collector demand, potential investment value and general economic conditions. There are literally hundreds of gold, silver and other coins (such as early U.S. copper pennies) that qualify as numismatic coins. Rare and extremely rare numismatic coins sell at a significant premium over their intrinsic metal content and can easily be priced in the tens and even hundreds of thousands of dollars.

Numismatic coins are normally bought and sold by serious investors and dedicated collectors who have the necessary re$ource$ and, equally important, a good knowledge of the value of coins. Honest dealers of numismatic coins will stand by the grading of their coins and offer a fair markup. Dishonest dealers do just the opposite - grading coins higher than their true grade and charging exorbitant markups.

If you decide to start dealing in numismatic coins, you must first get educated about the subject. Buy a few good coin books for reading and reference, look for coin-related forums, talk to dealers and/or other coin investors and use the Internet for more in-depth research. With this knowledge, you will be better prepared to identify one or more honest coin dealers you will be comfortable doing business with.

Gold Investing - Gold Bullion Coins

2009-09-10T19:14:00.000-07:00

It's no secret that gold bullion coins are hugely popular these days. People are concerned about the stability and loss of purchasing power of the paper money they use day-in and day-out. Having some gold in your possession is comforting, even if it is a small investment. And that's where gold bullion coins come in.

Gold bullion coins are struck by government mints around the world and have value related to their gold content (referred to as intrinsic value) and the current (spot) price of gold. Another appeal of many gold bullion coins is their artistic beauty. Gold American Eagles, Gold Canadian Maple Leafs, Chinese Pandas, Gold Austrian Philharmonics and Australian Kangaroos are all beautiful coins you would be proud to own. And don't overlook the original one-ounce gold coin, the South African Krugerrand. It enjoys one of the lowest premiums of all gold bullion coins.

If your initial goal is to "have and to hold" as much physical gold as you can for the money you have to invest, gold bullion coins are where you want to start. All of the gold coins mentioned above are recognized worldwide and are very liquid (easily converted back to paper money). But be sure to shop around as prices can vary widely among dealers. Invest in the bullion coins with the lowest premium over gold's spot price.

Next gold investing topic - numismatic gold coins.

Gold Investing Guide - Introduction

2009-08-23T22:53:00.000-07:00

Welcome to the Gold Investing Guide. Here you will find valuable information on the most popular ways to invest in gold. As a former salesman of gold and silver for a large, reputable precious metals dealer, you will find value in the information posted in this blog. Check back often for straight, no-nonsense discussions on the many ways to invest in gold.

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2009-08-15T19:52:00.000-07:00

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