Spot gold hit a six-year high late last week. It is the first time since April 2013 prices soared so high – peaking at a value of $1,5334.31 an ounce. Due to this price bump, US gold futures rose by roughly 1.3% to $1,537 an ounce. Despite the positive momentum, these high levels could not be sustained over the weekend.

Several factors drive the current and future value of gold and silver. Weakness in the Argentine Peso, civil unrest in Hong Kong, and the US-China trade war has forced investors to seek safehaven. Read More

The Royal Canadian Mint is a favorite coin producer for precious metals investors. Many prefer the Mint’s 24k gold offerings or maybe the .9999 silver bullion. To investor delight, the Royal Canadian Mint unveiled its fourth numismatic line for 2017.

Of note, the Mint celebrates Canada’s 150th anniversary in this line, including an ultra-high relief 10 oz fine silver coin featuring the 1867 Confederation Medal and an obverse of Their Majesties Queen Victoria and Queen Elizabeth II. The new line of coins celebrating Canada’s 150th anniversary even features fireworks that light up!

Another 2017 $10 Fine Silver Coin – Celebrating Canada’s 150th: Wild Swift Fox and Pups, features the photography of Saskatchewan’s John E. Marriott.

The 2017 $5 Fine Silver Coin was designed by Tony Bianco and features a traditional Canada Day fireworks display surrounding a colored Canadian flag.

The fireworks will light up thanks to the inclusion of glow-in-the-dark technology.

Researchers believe they have discovered a way to add gold and silver to nail polish to create a durable, tined and perhaps even antibacterial nail coloring, extending the precious metals’ ancient uses for fashion in the form of jewelry.

Related: World’s Second Largest Gold Coin Stolen From Berlin Museum

The research, published in the ACS’ journal Industrial & Engineering Chemistry Research, highlights how modern techniques depend on pigment powders and additives. Scientists, investigating nano-particles in polishes, discovered they can make nail polish more durable, in the case of silver nanoparticles, treating fungal toenail infections.

To break silver, gold and platinum alloy, they shot lasers into gold in short bursts for periods of fifteen minutes. They learned that this resulted in colored, transparent polishes with a metallic sheen. Researchers used laser ablation to create a master batch of metal nanoparticles in ethyl acetate, a polish thinner, which could then be added to individual bottles of polish.

A-Mark Precious Metals CEO Gregory N. Roberts sold 3,300 shares of the company’s stock on Thursday. Sold at $17.66, the overall sale totaled $58, 094.96. A-Mark Precious Metals Inc sales, which trade 0.35% during midday trading Thursday, reached $17.45.

Related: Spanish Government Limits Cash Withdrawal 1,000 Euros

Overall, 23,027 shares of the company traded hands, and the company’s 50 day moving average ended the day at $19.22. It’s 200-day moving average is $17.67. A-Mark Precious Metals Inc’s twelve month low of $14.02 and 12-month high of $22.00.

A-Mark’s market capitalization is $122.69 million. A-Mark’s net margin is 0.10%.

Silver has increased in value 9 percent since the start of the year, largely due to improving sentiment among institutional investors. But, in the past couple weeks, many of the gains in 2017 have been erased. 

Related: How to Start Your Own Gold Dealer Website

“Changing expectations towards the outlook for U.S. interest rates and the proliferation of negative policy rates across other key reserve currencies has rekindled institutional investor interest in precious metals,” according to the Silver Institute. “Meanwhile, a marked improvement in silver industrial offtake, led by photovoltaics, which achieved a record high last year, is also helping.  All these factors in turn have fueled investment inflows into silver futures, options, exchange traded products (ETPs) and over-the-counter products.”

A forthcoming U.S. Fed rate hike this month led to precious metals sales. 2016 marked silver’s first yearly rise in a 9 percent increase.

“Turning to physical investment, sales of silver bars and coins in 2016 fell from 2015’s record high, due to a downturn in U.S. and Indian demand, the world’s two largest markets, according to Metals Focus, the precious metals consultancy based in London,” writes the Silver Institute. “In part, this reflected some market saturation after several years of very strong demand. The price recovery also meant that 2016 saw no repeat of the surge in bargain hunting seen in 2015.”

Michael DiRienzo, Executive Director of the Silver Institute: “We expect that the factors that buoyed institutional silver investment over much of 2016, and have carried over into the early months of 2017, will remain relevant for the remainder of this year.”

If institutional demand can maintain silver’s gains on the year before March has yet to be seen. 

With a one-year lapse in availability, the United States Mint is returning in roaring fashion with its annual 2016 Limited Edition Silver Proof Set, which went on sale at noon today.

Silver prices have fallen since 2011, when it neared record prices. A strong dollar and rebounding economy, according to experts, has undermined that silver bull run. Read More

The Denver Broncos added silver Heisman Trophies to their locker room recently to celebrate their three Super Bowl Championships as football enters its stretch drive.

“That’s cool,” Broncos safety T.J. Ward said. “I like seeing those on a daily basis.” Read More

Markets did not know what to do after election results poured in, although many markets had been pricing in a possible Trump victory for about one month prior to the election, as polls were too close to call and also the accuracy of many mainstream polls were thrown into question.

Gold futures fell precipitously Friday, their lowest finish since June, thanks to strength in the U.S. dollars and equities. The Federal Reserve, according to many analysts, might increase interest rates next month. The main reason for precious metals decline is similar to why global currencies have fallen: the strength of the dollar. Read More

A-Mark Precious Metals, a Southern California based precious metals trading company distributor for all the major sovereign mints,  acquired a majority stake in Indiana-based SilverTowne Mint.

SilverTowne Mint, a leading producer of fabricated silver products, has produced about 12.5 million silver ounces.

A-Mark will increase its purchases of fabricated silver products from SilverTowne Mint as well as providing SilverTowne customers with A-Mark’s full range of products and services.

SilverTowne Mint designs and produces more than 25 different fabricated silver bullion products and more than 300 different seasonal and topical specialty products. A-Mark intends to leverage SilverTowne Mint’s longstanding fabrication capabilities and extensive coin die portfolio to expand its custom coin programs, as well as introducing innovative, new custom products for individual customers.

“It’s a remarkable opportunity for SilverTowne to join forces with A-Mark,” said Hendrickson. “We are excited to provide our customers with the product selection, and finance and service options that will be available to them through our partnership with A-Mark.  As a family owned and operated business for three generations, I’m proud of what we have accomplished within our industry, but I’m even more excited about the level of service we will be able to provide to our customers as a result of this joint venture with A-Mark.”

Greg Roberts, CEO of A-Mark Precious Metals, commented: “The acquisition of SilverTowne Mint is truly unparalleled in the mint fabrication industry. SilverTowne Mint will be one of the most efficient vertically integrated mints in North America, benefiting from Asahi’s global refining capabilities as part of the strategic supplier agreement and A-Mark’s industry-leading distribution network.

“The acquisition also provides A-Mark with two world-class traders in Rita Graft and Patty Roberts, who have 47 years of combined experience and will join our international trading team. In addition, the numerous operating synergies between A-Mark and SilverTowne will significantly expand our capacity to meet unforeseen surges in demand during volatile market environments, such as the one we experienced last August and September.

“Most importantly, our exclusive distributorship with SilverTowne will enable us to sell a greater amount of silver per year to fulfill the increasing demand of our existing customers and service a broader range of potential customers. This helps us further establish our reputation for being not only one of the leading bullion trading companies, but also a full-service precious metals provider with a complete array of value-added services, including financing, storage, and logistics.”

GoldSilverBitcoin – Entering into the gold business and starting your own gold dealing site is easier than ever. As goldbugs and silverbugs might notice, there is quite a bit of turnover in the online bullion retail scene. Moreover, the general websites that are highlighted are not the only ones. There are many, many online gold dealers who have carved out their own niche. The industry itself has gone through a lot of flux lately. We highlight in this article how you – Yes, YOU – can enter into the gold selling space. While we can’t go into certain technical details, this guide will make you aware of the tools you need. Here’s how.

There are numerous products precious metals oriented online retailers focus on, such as bullion gold, silver, platinum and palladium coins and bars, semi-numismatic gold and silver coins such as Morgan Dollars and Saint Gaudens (Pre-1993 gold coins), tube holders and survival gear. One thing many people, in my opinion, do not consider while opening a precious metals shop is jewelry. While precious metal coins oft carry small premiums – save for the Pre-1933 gold coins – jewelry has higher margins.

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A group of eight central banks in the US and Europe, the London Gold Pool controlled the price of gold for six years until the Pool collapsed leading into a more than decade long bull run. Gold reached nearly $1,000 per ounce, silver nearly $50. The central banks had pegged the price too low causing runs on gold, the British pound and US dollar. France boisterously left the pool and repatriated gold reserves, like many nations today are wont to do. In March 1968, the London Gold Pool collapsed amidst chaos in the market.

A two-tier system of official exchange and transactions was implemented after the London Gold Pool controls failed in order to suppress the gold price. The gold window closed altogether in 1971 during the Nixon Shock. Gold rose in price to $850. Western nations had to sit out the bull run as eastern markets remained open in the days following the Pool’s collapse.

In 1960, gold buying sent the price to more than $40 per oz. The US Federal Reserve and Bank of England allocated for the sale of BoE gold supplies in order to keep the price down. Banks worked feverishly to maintain the $35/oz gold price despite the free market dictating appreciation. The banks began “targeted selling and buying of gold” in order to achieve the price controls. They ultimately failed.

Poor economic conditions amid Vietnam War protests created instability in the US and thus the London Gold Pool. Inflation became an issue for the US. It would not exchange foreign-held dollars into gold and France left the Pool in June 1967. The nation moved large amounts of gold across the Atlantic from New York to Paris.  In 1967, Britain devalued its currency causing panic and a gold run.

By spring 1968, according to the Federal Reserve, “the international financial system was moving toward a crisis more dangerous than any since 1931.”

The British government devalued the pound on November 18, 1967 by 14.3%. The US adopted measures to slow down the gold run. London sold 100 tons of gold at market price on March 8th, a major increase in a typical sale for the bank. The pool released a statement:  “the London Gold Pool re-affirm their determination to support the pool at a fixed price of $35 per oz”.

On March 14, 1968 the US government and the British government agreed to close the London gold markets the following day. The British government declared March 15 a bank holiday.

The London gold market remained closed for two weeks. Around the world, gold trading continued amid rising prices. Switzerland founded the Zürich Gold Pool, helping to establish Zürich as a gold trading center of the world. The Federal Reserve funds rate had increased from 2% on October 25, 1967 to 5.13% on the day the Pool collapsed. The fed fund rate appreciated to 10.5% during the summer of 1969.

The two-tiered system stipulated $35 gold. Gold pool members did not trade gold with regular people. The US government suspended gold sales to governments trading in private market.

Although the gold pool members refused to trade gold with private persons, and the United States pledged to suspend gold sales to governments that traded in the private markets inflation ravaged the US. West Germany abandoned the Bretton Woods System in May 1971. The dollar declined. Switzerland purchased $50 million worth of gold in August. France purchased $191 million in gold. By then, US gold reserves had reached their thinnest levels in nearly fifty years.

President Richard Nixon unilaterally ended dollar convertibility to gold in what’s called “The Nixon Shock.” This effectively ended Bretton Woods. The Federal Reserve wanted the US, BoE, West Germany, France, Switzerland, Italy, Belgium, Luxembourg and the Netherlands to begin selling gold so that gold would not appreciate.

According to Fed chairman William McChesney-Martin, the US would protect the $35 gold price  “down to the last ingot”. The London Gold Pool airlifted emergency shipments of gold from the US to London due to high demand. Demand for gold was overwhelming. The Fed failed.

So what can we expect from a Comex default?

Market manipulation and price controls do not work. Free markets manage supply-and-demand better than central planners. When central planners scheme to control the price of goods, services, etc. it is only a matter of time before their cartel begins to fade. They generally try harder to manipulate the market, but always the free market dictates.

The London Gold Pool collapse and the COMEX default could come amid a similar situation: the world reserve currency is at risk. However no amount of government authority, command-and-control economics (Communism) can drown out the reason of the free market over the long-haul.

The end of the London Gold Pool cost the member banks (and so therefore the countries) billions of dollars. The same would happen with a COMEX default. The gold price appreciated 2300% between 1968 and the 1980 peak. This time around, the silver price would skyrocket in a similar manner.

Discussion about whether or not there is a silver shortage has divided the silver community. More information about the situation has recently come out. The discussion usually revolves around to points of view: that there is no silver shortage, merely a coin shortage as certain Mints run out of blanks to mint coins. The other says there is not enough silver in the world. As David Morgan:

“A pet peeve of mine is when an article is published talking about a shortage in silver or gold. Recently, we have seen an increase in articles claiming that there is a precious metals shortage simply because both the U.S. Mint and Royal Canadian Mint ran out of blanks. Both Government Mints predetermine a rough amount they will mint at the start of the year. When demand surges, a “bottleneck” can occur and this has happened in the past. Why is this such a pet peeve? Because a shortage in a specific silver product does NOT mean a shortage in the raw material. It would be like saying there is a rice shortage if Rice Krispies stopped being produced momentarily.”

Another sources disagree. For instance, according to The Silver Institute the world’s silver supply is in deficit by 57.7 million ounces.  Nonetheless, news sources seem to only confirm a shortage of American Silver Eagles, Canadian Silver Maples, Austrian Philharmonics, Brittanias and Perth Mint silver coins. Others wonder if so many blank shortages at once has happened before. As Reuters reported:

Government mints around the world are struggling to keep up with unprecedented demand for silver coins, spurred by a drop in silver prices to six-year lows.

The mints in Canada, Austria and Australia have told Reuters they are rationing sales of silver bullion coins.

ROYAL CANADIAN MINT:
The mint has been rationing sales of its silver Maple Leaf coins since July after record monthly sales, an official said. Sales have hit records in August and September.

AUSTRIAN MINT:
The Austrian Mint has been rationing sales of its Philharmonic silver coins and has increased production of silver blanks after higher-than-expected demand in July and August, a spokeswoman said.

It expects supplies to return to normal by mid-October.

U.K. ROYAL MINT:
The U.K. Royal Mint has seen a 600-percent increase in sales of its silver 1 ounce Britannia coins so far this year on “unprecedented demand,” said Chris Howard, director of bullion at the Mint.
It is increasing production and has significant pre-orders for 2016-dated coins, he said.

PERTH MINT:
The Perth Mint, owned by the government of Western Australia, has begun rationing supply of a new line of coins this month as it is unable to keep up with robust demand, an official said.

It has sold over 2.5 million ounces of silver so far this month, which is a record and three and a half times more than August.

U.S. MINT:
The U.S. mint has been issuing a weekly sales quota for its flagship American Eagle silver coins since the end of July.

A spokesman said its Westpoint production facility is operating three shifts and paying staff overtime to meet demand.

The mint was forced to stop selling its popular silver coins for three weeks in July after selling out of inventory due to strong demand.

I spoke with traders at major bullion wholesalers recently and they said that things would return to normal in 3-5 weeks in terms of silver delays on the most popular products at the retail level.

On the retail level, procuring silver bullion has become an issue with delay in several products including American Silver Eagles, Canadian Silver Maples and even some private silver rounds. The premiums tell the entire story.

Silver.com has become the premium leader in the online retail market. As you can see by the chart below, the company raised its premium on American Silver Eagles from 22%-sub 30% around August 23.

Silver.com did similar with its Canadian Maple Leaf price.

APMEX increased its Canadian Silver Maple price:

Provident metals raised its premium on American Silver Eagles from 30%-40% in the past two weeks.

 Premiums on Austrian Philharmonics have also increased with little reprieve: 

While the premium change coincides with a decrease in the silver price to sub-$18 from $18.60, you can see that the silver price has regained much of this, while premiums remain high. There are still great opportunities to buy inexpensive bullion. Find them here.

US and New Zealand researchers recently  found massive gold and silver deposits in reservoirs underneath a volcanic range on New Zealand. Project researcher Stuart Simmons told Quartz that find could be worth between $50 million and $250 million, though that is speculation. As Simmons explains:

Taupo Zone [is]…similar to Yellowstone National Park in the US, volcanic magma enriches underground water with heat, chemicals, and in some instances, precious metals.

 The steam from the area’s hot springs is used as a source of geothermal energy, Simmons explained, and when the hot water moves toward the earth’s surface, it is sometimes caught in the pipes of geothermal production wells—which are designed to generate power from hot water in the earth. Over time, thin films of silver and gold build in the pipes of these wells.