Now that many leading mainstream banks have raised their gold price target and have recommended a significant portion of one’s portfolio be in gold, it’s time to make sure that your regular portfolio and your retirement portfolio are properly balanced in precious metals. After all, as the Bank of America said when it raised its target price of gold to $3,000, “The Fed Can’t Print Gold.”
Now that gold prices have set a new high, we have seen more price predictions above $3,000 per ounce. This week, I noticed that the same person who once bet my friend Gary Alexander that gold would fall below $1,000 in 2017 – and later predicted gold would go above $3,000 – has now predicted $5,000 gold.
Gold has been rising when the dollar falls and falling a bit when it rises, but when the dollar begins to fall farther and faster, you can expect a strong rush to gold, as has been happening in Turkey and – to a lesser extent – in countries like Russia and Argentina, where their currency is chronically weak. The Wall Street Journal wrote about this last week in an article entitled, “In Turkey, Weak Lira Powers Fresh Gold Rush: Turkish households bought record volumes of gold this summer – and safe boxes to keep it at home.”
We have been telling you about a wide array of changes coming in U.S. coins. First, we heard about the new Morgan and Peace dollars probably coming in 2021 to mark the centennial of the final Morgan dollar year and first Peace dollar year. Then we heard about a new change in the American Eagle reverse designs in 2021. These new coin issues next year will create great interest in old and new collectors and in precious metals in general, with new ads posted in the media, generating new customers and new national interest.
It's also wise to shun cold calling, mail-order or Internet coin dealers who distribute price guides but then deliver coins graded by substandard certification services without an FTC recommended 15-day return privilege. The Federal Trade Commission has cautioned that some certification services have looser grading standards than the industry norm and warned that coins sold by dishonest coin dealers too often are graded by such companies as "part of fraudulent sales schemes...intended to mislead consumers." Remember price guide prices are typically for PCGS or NGC graded coins and not for grading services whose similar-sounding initials could be confused with PCGS or NGC. Have your dealer repeat each grading service's letters one by one.
The unpredictability of market values has been dramatized in recent years by the frequent ups and downs of precious metal prices. Gold, silver and platinum all have trended significantly higher in long-range terms - but all have experienced corrections that have caused their bullion value, and that of bullion-sensitive coins struck from these metals, to fall sharply in the short run. Similar changes can, and have, also occurred over the years with numismatic coins - those whose value is based more on their collectibility.
By definition, a guide is someone or something that provides information intended to help a person make an informed decision. The price guides used by coin buyers and sellers are lists of market values intended - in theory, at least - to help them decide how much to pay or how much to charge for given coins.
Continue reading "How Dealers Use Price Guides Determine Value"
Last week’s New Orleans Investment Conference featured several speakers who predicted $3,000 to $5,000 gold prices within the next few years, but that would normally be expected in a gold-oriented conference. We’re more impressed when mainstream banks and investment advisors predict much higher gold prices. We’ve mentioned Bank of America and Goldman Sachs in recent months, but Germany’s Commerzbank was one of the first major banks to predict higher gold prices – several years ago.
After enduring the first two debates with challenged moderators, I’m tempted to say “we don’t need no stinking moderators” at these election-year debates. After all, Abraham Lincoln and Stephen Douglas simply got up and talked for a couple of hours and found a way to get to the core of the issues their audiences cared about. What’s wrong with the candidates just asking each other a series of questions?
Do you remember the Bicentennial of 1976 and all the tall ships in New York harbor and the welcome celebration of America’s 200th birthday? It came after Watergate, Vietnam, and a very dark time in U.S. history, something like the Covid-19 pandemic, urban riots, racial tension, political divisions, and recession we’ve suffered in 2020 and may see continuing next year, depending on the election outcome.
One looming light at the end of the tunnel is America’s 250th birthday on July 4, 2026. One encouraging note is that on this Columbus Day weekend, The New York Times has begun to back away from its destructive “1619 Project,” which purported to change America’s birth date to the arrival of the first slave and thereby cast the entire national history as a slave-centered story. This helped lead to a summer of destroyed statues of George Washington and other Founding Fathers with “1619” painted on them in great disrespect.
1st American Reserve's Mike Fuljenz contributed this piece of news of what we can look forward to in 2021. Last Thursday, the U.S. Mint unveiled the new reverse design for the American Eagle Gold and Silver bullion and collectible coins for 2021, a year which marks the centennial of the first Peace Dollar and the final Morgan Dollar year as well as the 35th anniversary of the American Eagle Coin, which debuted in 1986.
1st American Reserve thinks this is a great post taken from the THE MIKE FULJENZ METALS MARKET REPORT of 9/30/2020.
History has made General George Washington’s winter in Valley Forge, PA (1777-78) a story of great courage, and indeed it was, but the next three winters with his dwindling army in northern winter camps were much more trying. Washington’s last major battle was at Monmouth, New Jersey, June 28, 1778. It was a draw after Washington rallied his retreating troops. The following three years and four months were a tale of strategic retreats with a dwindling army and few supplies from a bankrupt nation and Congress, using a worthless currency called “The Continental.” Many farmers preferred selling their produce to the British Army with their “hard” currency, the British pound, thereby impoverishing the Patriot army.
Here are two portraits of the U.S. Army entering their winter quarters in 1779 and 1780, taken from Ron Chernow’s “Washington: A Life.” He is the author who wrote the biography of Alexander Hamilton, which became the basis for the Broadway musical, “Hamilton,” and his most recent biography is “Grant.”
1st America Reserve's hometown, Beaumont, Texas survives Hurricane Laura – But Lake Charles Was Hit Hard. As indicated in the previous week’s Metals Report, 1st American Reserve came through Hurricane Laura reasonably unscathed. We endured one day of rolling electrical backouts but most of us were either at work or were helping others in need, and we were all back at work in full force the next Monday. That wasn’t the case for our friends and family in Lake Charles, Louisiana, Mike Fuljenz original hometown. Hurricane Laura, the strongest hurricane ever to hit Louisiana, went right over Lake Charles with the highest winds on the eastern wall of Laura’s eye hitting the city directly. The peaceful eye never even gave them a moment of relief.