Silver Coin Premiums – Another Collapse?

by

SILVER COIN PREMIUMS

In 1972, a bag ($1000 face value) of “junk” US silver coins sold for approximately $1300-1350. The average closing price of silver that year was $1.68 oz; hence, the silver content (715 ounces) value was $1200 per bag. The remaining difference was a premium of about ten percent.

A lower silver price would generally result in higher percentage premiums because the face value of $1000 represented a ‘floor’ which limited the risk of holding the coins. In other words, the real investment risk was limited to the amount you paid over the $1000 face value.

Read more

Silver’s Bad Break

by

SILVER’S BAD BREAK 

Bad breaks can be tough to recover from. The process can be arduous and can take a long time. Sometimes a full recovery remains elusive and distant.

Silver has a history of bad breaks over the past half-century.  Below is a series of charts that tell the story…

Read more

Gold Charts – $1450

by

GOLD CHARTS

There are four gold charts (source) in this article. All charts are plotted using monthly average closing prices.  I will provide commentary after each chart and then summarize at the end. First chart…

Read more

Asset Price Deflation

by

BEFORE ASSET PRICE DEFLATION

Before we talk about asset price deflation, let’s review what happened before 2022.

Most financial assets benefited enormously from the Fed’s hugely gratuitous efforts to support, sustain and reinflate prices after the 2020  collapse and the ensuing forced economic shutdown.

Read more

Consumer Price Inflation

by

CONSUMER PRICE INFLATION

We hear the term used often, and I’m reasonably certain that most of those who use it think they understand it; but, is the term itself a correct expression for what is meant?

Read more

Gold Stocks Are Worse Than Gold

by

GOLD STOCKS ARE WORSE THAN GOLD

Gold stocks latest swoon confirms what has been stated and inferred in my previous articles about gold mining shares – namely, gold stocks are a lousy investment.

The original article linked in the preceding paragraph was published in September 2016. I just finished reading it again and find no reason to edit or modify its contents.

The price of gold peaked in the summer of 2016 – shortly before my article was written and published – at $1357 oz. (monthly average closing price). At that time the GDX (ETF index of gold mining shares) peaked at 30.60.

Both gold and gold mining shares (gold stocks) have been lower and higher since then, and the past six years have seen a fair amount of volatility. Lately, both gold and gold stocks have undergone downside corrections since their most recent highs earlier this year.

So where are we now?

Read more

If Inflation Is So Bad, How Come It’s Not Worse?

by

IF INFLATION IS SO BAD…

Recent headlines have many people despairing over inflation.

A couple of recent examples such as “Inflation Is The Worst It’s Been In Forty Years” and “Consumer Prices Are Rising Rapidly” were followed by “High Inflation Is Here To Stay”.

Just how bad is it? Let’s take a look.

Read more

Interest Rates Could Double/Treble Again

by

INTEREST RATES INCREASE

The steady increase in interest rates coupled with references to inflation has some people scratching their heads. Not surprising. The two don’t necessarily go together. For now, let’s see if we can add some perspective to interest rates.

Read more

Understanding Profit Potential In Gold

by

An analysis of any profit potential in gold requires an understanding of gold and its fundamentals. The problem is that most folks do not understand gold or its fundamentals. 

“Most folks” includes investors, traders, speculators, advisors, analysts, marketers, etc.

Read more

Gold Price Targets On The Downside

by

GOLD PRICE TARGETS 

Almost everyone else continues to focus on the next upside leg for gold. In this article I will show some charts that allow for possible downside targets within the prevailing half-century uptrend.

There are four charts. I will provide some commentary after each chart.  After that, I will add some final comments. The first chart follows…

Read more