Week Ending March 20, 2022
Entering New Phases With Gold
Gold traded in a tight range between $1,926.00 and $1,952.00 per ounce on the spot market last week. It would appear that the Ukrainian War is priced into the yellow metal. With the Federal Reserve board of Governors raising interest rates by ¼ point on Wednesday, both stocks and metals yawned. The first of the well announced increases was a given in the minds of most investors, the decision to continue at the aggressive rate which calls for 5 or 6 additional rate hikes in 2022 are murkier and should have more impact. With gold maintaining firmly above the $1,900.00 per ounce level, it has entered a new consolidation phase in advance of another leg upward. The new all time over $2,000.00 was clearly too much too quickly and represented knee jerk reactions to the Ukrainian conflict. Profit taking pulled prices back to a generous and needed move to begin the next phase of trading. Once the distraction of geopolitical events in Europe is behind us, investor attention will certainly return to the most important economic issue on the minds of all Americans, runaway inflation.
Silver Dependent on Headlines and Effects of Gold
Silver had an unusual trading week but still in the $24.50 and $25.00 range. The real story in Silver remains the physical demand and the physical price thereof. Random years of Silver American Eagles continue to retail for over $42.00. The blank planchette shortage is taking a toll on all newly minted sources. Bars and Rounds still offer the best premiums averaging $30 each on the retail internet stage. As news calms, silver does the same. As gold runs, silver runs as well. Silver is completely dependent on headlines and the coat tail effects of gold. In order to leverage silver, numismatic areas should be researched for portfolios of all sizes. The Morgan and Peace Dollar arenas remain strong and are still considered to be bargains.
GMR Has the Right Experience
The numismatic gold and silver market is stronger than perhaps anytime in history. With bid prices continually increasing and shortages of the finite market and individual specimens, dealers are forced to compete against each other for quality inventory and competitive prices. It is Important in times like these to have a dealer with the experience and contacts in the industry to provide its clients with the best available offerings. GMRgold is one of those companies with our management team combine for nearly a century of experience in the precious metals and numismatic markets. Our portfolio team tirelessly scours the market and typically is aware of packages and deals before they are common knowledge with competing institutions. Our buying power allows our clients to feel confident that they are adding the best coins at the best price to their portfolios. Many times, our portfolio managers learn from our clients that they are not comfortable with numismatics because they do not understand the market. Our Account Managers will not only help you with your bullion purchases but educate you in the exciting arena of rare gold and silver coins. The current market mirrors markets in the 1970’s and 1980’s when the rare coin index increased as much as 1,175 percent in a short 3 year period. Those markets were responding to double digit inflation as we are headed towards today. It is very early in this market and while we do not recommend putting all your eggs in one basket, there is a place in everyone’s portfolio for numismatics.
Be prepared for wild swings in all the markets as the midterm elections get closer. Positive headlines and negative rebuttals will litter the summer as the incumbent party attempts to cling to its razor thin advantage. Buy the dips if you are a bullion customer, if you are a numismatic enthusiast continue to accumulate.