The gold and silver market could face logistical challenges as part of the fallout from the coronavirus crisis.  Mints, such as the Royal Canadian Mint, have made headlines as they’ve closed. Some have speculated that mine and mint closures due to efforts to slow the spread of COVID-19 could create supply shortages.

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James Turk is one of the most recognizable names in sound money. His career started at Chase Manhattan Bank with assignments in Thailand, the Philippines, and Hong Kong. He thereafter became the manager of the Commodity Department of the Abu Dhabi Investment Authority and held various advisory roles in money management.

Silver prices are trading at $17.04, up 0.65% on the day.

That comes on the heels of the U.S. and China announced on Friday that a limited trade deal had been reached.

Yet, silver trails gold in terms of gains in 2019. While gold is almost up 15% in 2019. The 200 EMA is at 17.14, which is below resistance at 17.25. The 50-day EMA is 16.72.

Gold mining exploration in the Black Hills of South Dakota is a signal that the gold miners are becoming increasingly bullish.

According to  the Rapid City Journal, five companies are currently drilling for gold in the mountainous region of the black hills from western South Dakota to Wyoming. 

DGLD, a network which claims to have over $20m in investment grade gold allocated in Swiss vaults and secured using Bitcoin, launched and is now available for purchase on Blockchain.com’s cryptocurrency exchange, The PIT.

DGLD, which was created by CoinShares, Europe’s largest digital asset manager, and Blockchain.com, and MKS (Switzerland), is a digital asset or token which, at creation, represents 1/10th of a troy ounce of physical gold stored in Swiss vaults for which token holders can swap or physically redeem.

The rich are buying physical gold bullion, coins, and bars, according to Goldman Sachs.

“I think gold’s going to $2,500, $3,000 an ounce in the 2020s because the climate—the landscape for gold is so hugely supportive.” Paul Schatz, Heritage Capital president, told Yahoo Finance’s On The Move. Goldman predicted $1,600 gold by 2020.

Online website ZeroHedge first reported on ‘odd’ exports of gold to Iran from Turkey all the way back in May 2012. Turkey’s trade balance fluctuated wildly as gold stocks flowed out of the country. 

After a strong first nine months of 2019, gold peaked at a nearly 25% gain at the onset of September. Goldman Sachs remains bullish on the yellow metal.

Central banks continue to buy gold after a summer rally that stalled as the calendar turned to fall. The latest Mitsubishi precious-metals update says many factors could sour 2020, and so therefore “smart money” is looking to gold as a hedge.

“Illustrating lingering macroeconomic concerns, the importance of diversification away from dollar assets and tail risk hedging, central banks around the world have continued to be net buyers of gold: November saw Turkey, Russia, Poland and newcomer Serbia (which bought 9 tons of gold) all add to their holdings of the yellow metal,” wrote Mitsubishi head of business development Jonathan Butler. Read More

Slovakia’s former premier told parliament it should force the central bank to repatriate the nation’s gold, which is stored in the U.K. He said history has shown that allies “can hardly” be trusted.

Ex-Premier Robert Fico now chairs the biggest party in Slovakia. He seeks a special parliamentary session on the issue, claiming the gold isn’t safe in the U.K. because of Brexit and a possible global economic crisis. Read More

Poland repatriated approximately 100 tons of gold from the Bank of England to demonstrate the strength of the nation’s $586 billion economy, according to central bank Governor Adam Glapinski.

The institution also brought 126 tons home in 2018 and 2019, increasing its gold reserves to 228.6 tons. The country is now the 22nd largest bullion holder in the world and holds the biggest reserves of the metal in the European Union’s east, according to the central bank. Read More

Goldman Sachs has a bullish outlook on gold. Analysts at the investment bank see prices pushing to $1,600 an ounce next year. The price of gold currently sits at $1459.62. That is a nearly 10% gain from present day prices. December gold futures are trading at about $1,456.70 an ounce. Read More

Last month, Infinigold announced the launch of a digital token, The Perth Mint Gold Token, backed by gold stored in the vaults of Australia’s Perth Mint, a world-leading precious metal refinery. We spoke with Andreas Ruf, the CEO of Infinigold, about working with Perth Mint to launch the token. Read More

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

Top Federal Reserve policymakers might cut interset rates if trade tensions continue to get worse.

Fed Chair Jerome Powell and his No. 2, Richard Clarida are watching disputes between the US and its trading partners. The next meeting of the Federal Open Market Committee takes place June 18-19, with Clarida noting that the Fed “can’t be handcuffed” by market pricing. Read More

(Gold Silver Bitcoin) President Trump warned last week of a  “major, major conflict with North Korea”. He said he’d rather do things diplomatically, though it’d prove “very difficult.”

Trump has made no secret about tensions between North Korea and the US. “There is a chance that we could end up having a major, major conflict with North Korea. Absolutely,” the president said. “We’d love to solve things diplomatically, but it’s very difficult.”

Trump noted that he was confident in Chinese President Xi Jinping and his attempts to influence the North. The pair met in Florida earlier this month to discuss the situation in the Korean Peninsula.

“I believe he is trying very hard. He certainly doesn’t want to see turmoil and death,” Trump told Reuters. “He doesn’t want to see it. He is a good man. He is a very good man and I got to know him very well. With that being said, he loves China and he loves the people of China. I know he would like to be able to do something, perhaps it’s possible that he can’t.”

White House officials on Wednesday describe North Korea as an “urgent” threat to national security and a “top foreign policy priority.”

Military action by the US would likely snowball into a massive strike from the North on South Korea. North Korea could also attack Japan.

“My problem is that I have established a very good personal relationship with President Xi,” the president said. “I really feel that he is doing everything in his power to help us with a big situation. So I wouldn’t want to be causing difficulty right now for him. So I would certainly want to speak to him first.”

Russia blocked a Security Council statement proposed by the U.S. on Wednesday to condemn North Korea’s missile tests. China supported the measure.

“Russia is slowing this down, and it is not clear why,” the diplomat told CBS News. “The U.S. wanted to get the message out.” North Korea’s failed missile test launch on Sunday added to geopolitical tensions escalating between President Donald Trump and Pyongyang.

By Wednesday, the world learned that military aircraft headed for Australia were not on their way to North Korea, as President Trump had intonated.

U.S. Vice President Mike Pence said Wednesday that Washington would work with its allies and China but that United States would meet any attack with an “overwhelming response”.

The first of 1250 US Marines have begun to make landfall  “stand ready to fight” against North Korea.

“I think that the commitment that we’ve taken to put a task force here with a conversation to get larger over the years says that we do think this is an important region,” Lieut. Colonel Middleton said.

“We are seeing once again a little bit of a flight to safety as a result of the news over the weekend of North Korea’s attempted missile test. That’s resulting in a little bit of a weakness in the U.S. dollar,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.

The U.S. military intercepted two Russian bombers in international airspace off Alaska’s coast. A pair of F-22 Raptor aircraft intercepted the Russian TU-95 Bear bombers on Monday, according to Navy Commander Gary Ross, a Pentagon spokesman said. He called the intercept “safe and professional.”

On Tuesday, at an annual military parade in Tehran, Iran put on display new S-300 air defense missile system, as well as other weapons seen under banners calling for “Death to Israel” in Persian.

President Hassan Rouhani said at the ceremony that Iranian military was “avoiding tensions and encounters” but that it had to “remain vigilant in the face of plots hatched by the others and increase deterrent power.”

Gold has held firm in recent weeks, thanks to tensions surrounding North Korea other geopolitical uncertainty including the upcoming French presidential election. Still, it endured its worst gain in a month on Wednesday, falling 0.8 percent.

Poor U.S. economic data and a lack of confidence for the Trump administration on tax cuts have led to the expectation of faster inflation.

Economic turbulence, extended by President Trump, contributed to safe-haven bids for gold. Unrest in other parts of the world, like Syria and North Korea, also contributed to gold’s higher price.

Gold climbed on Friday, ensuring a monthly gain of more than 1%, as data showing weak U.S. economic growth weighed on the dollar.

The ICE U.S. Dollar Index, which helps measure the dollar, had fallen 0.1% and trading about 1.6% lower for the month.

Exchange-traded funds SPDR Gold Trust increased 0.2%, climing for the month 1.6%. iShares Silver Trust fell 0.2%, down 5.3% for the month. The VanEck Vectors Gold Miners ETF increased 2.5% Friday,  its monthly loss 1.9%.

El Salvador will prohibit gold and other metal mining after lawmakers overwhelmingly voted on Wednesday for the ban. Environmental activists say the country is the first in the world to ban metal mining.

Related: How to Start Your Own Gold Dealer Website

El Salvador’s delicate environment was cited as being unable to sustain metal mining operations, and legislators from many parties approved the ban, supported by the popular Roman Catholic Church. Proponents said a ban would proect the country’s supply of clean water.

“Today in El Salvador, water won out over gold,” tweeted Johnny Wright Sol, a legislator from the center-right Arena party.

Around the world, some bans on cyanide use to extract gold from low-grade ore exist, and Costa Rica has a national ban on open-pit gold mining.

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.

(GoldSilverBitcoin) – 11 people were killed in accidents in two neighboring gold mines in central China’s Henan province on Friday.

The thick smoke engulfed a pit at the Qinling gold mine, run by the China National Gold Group in Lingbao City. Twelve workers and six management staff were trapped inside, as reported by Xinhua on Saturday.

Related: How to Start Your Own Gold Dealer Website

Seven bodies were retrieved by rescue workers on Friday night. Ten people were taken to hospital and are recovering. One failed to respond to treatment. Another body was retrieved on Saturday afternoon.

In a neighboring gold mine on Friday afternoon, a similar accident took place, reported by Xinhua based on reports by the provincial work safety administration.

Six workers were trapped and four had been rescued. The other two were found dead later in the evening.

“Industrial accidents are common in China,” reports Ryan Woo for Reuters. “Anger over lax standards is rising after 30 years of breakneck economic growth marred by incidents from mining disasters to factory fires. Earlier on Saturday, an operation platform collapsed at a power plant in southern China, killing nine people.”

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%.

The Idaho House of Representatives voted by a 56-13 margin last week to cease Idaho taxation on precious metals, including gold and silver coins and bars.

Related: China and Russia are Stockpiling Gold

Bill Sponsor Representative Mike Moyle (R) and the entire Republican caucus voted in favor of the measure. Now the Republican-controlled Idaho Senate must also vote in favor of the bill and Governor Butch Otter (R) must sign the bill.

HB 206, backed by the Sound Money Defense, Idaho Freedom Foundation, Money Metals Exchange and grassroots activists builds on Idaho’s sales tax exemption on precious metals to end income taxation on the sales of “precious metals bullion” and “monetized bullion.”

Representative Ron Nate (R), said from the House floor: “According to the U.S. Constitution, Article I, Section 10, there is only one thing that a state can declare as currency if they think that our federal currency is going out of whack and some might argue that they think our federal currency is going out of whack already. If we are not going to allow people to declare capital losses on their Federal Reserve Notes or their dollar holdings, it would also be unfair to tax people for their gold and silver holdings. Gold and silver is an alternative to holding Federal Reserve Notes and it is the ONLY alternative that the U.S. Constitution says that the state can allow as another currency. It’s unfair to tax it just as [it’s unfair] to tax losses on Federal Reserve Notes.”

Taxpayers who sell their precious metals might be on the hook for capital gain taxes. “Policies that discourage precious metals ownership reduce the likelihood that Gem State citizens will take prudent steps to insulate themselves from the inflation and financial turmoil caused by the Federal Reserve System,” said Stefan Gleason, director of the Sound Money Defense League. “Precious metals bullion is already exempt from Idaho’s sales tax. HB 206 removes the final disincentive in Idaho tax law that stands against ownership of the monetary metals.”

Utah and Oklahoma have enacted similar income tax measures. Arizona is considering similar legislation, and states like Tennessee, Maine, and Alabama seek to remove precious metals from the sales tax.

Image: Shutterstock

A Colorado man has people in the Northern part of the state rushing to find the cash and gold he stashes around the area per a treasure hunt he conducts on social media.

Related: Treasure Hunter Who Stole Gold Bars Arrested in Florida 

The man, who wants to only go by Matt, started a Facebook page last month called ‘Northern Colorado Treasure Hunters.’

He now has 4,000 followers. That might have something to do with his giving away gold.

“Quite honestly, it was just an idea I had. I started the page and it went from there, just snow balled out of control. It’s been fun,” Matt said.

During the week, Matt stashes either cash or gold somewhere in northern Colorado. After snapping a photo, and posting it on social media, people then must look for clues in markings and landmarks to track down the prize. This has led to people getting outside in parks and fields trying to find the hidden treasures.

“We try to do it every time. I have their text alerts so as soon as it hits, I get it,” Courtney Beers said.

“It’s a fun thing to be able to do as a family, especially with the weather being so nice,” Rebecca Garcia said.

Matt hopes to attract business as sponsors so he can offer bigger prizes.

“I plan on doing it for a long time,” Matt said. “It gets people out and about. They have fun and it gives families something to do. And there is incentive at the end of the tunnel. That’s what I like about it. To watch everyone get hyped up about it and run around the parks.” The activities have indeed brought families together.

“It’s just something to do with the kids and they like looking for things, kind of like Easter,” Colton Phelps said.

“I think it’s awesome. I think it’s a lot of fun. Gives people an excuse to get out and go find stuff, see new places,” Cameron Espinoza said.

An artist hid five, £1,000 small gold objects around Scunthorpe, North Lincolnshire. If you find these valuable pieces? They’re yours…

It’s not as easy as just finding these objects and cashing in, however. You will have decode encrypted messages starting with five paintings at the local arts centre and the encrypted codes within.
“I like the idea that ancient objects that were once hidden beneath the earth and were discovered and displayed at the museum are now being rehidden,” said designer Luke Jerram. “I hope the public will enjoy visiting 20-21 Arts Centre and exploring the town and surrounding countryside.”

He added: “There’s a real mixture including one that could be solved by a child, others that could be deciphered by the average person and more challenging puzzles for mathematicians or code-breaking enthusiasts to try their hand at. One of the puzzles may take some months or even years to solve, if indeed it is ever cracked.”

Mathematician and professional code-setter Dan Fretwell encoded the artwork.

Code crackers lined up at the 20-21 Visual Arts Centre located in Church Square, United Kingdom.

“There is no way I could crack the most difficult one, I could certainly crack probably two or three of the paintings,” Jerram said to the BBC. “Some are really easy to decode, whereas the most complicated painting, it would take maybe a month for someone to perhaps work it out.”

Some of the codes could take months to decode. The five objects cast in gold are based upon items seen in the North Lincolnshire Museum.

The Treasured City exhibition runs through April 29.

Gold refineries in Switzerland sent a record amount of gold to Shanghai last December, and Russia is buying gold in droves as well, as the United States experiences a time of tumultuous politics and the european banking system is reported to be on the verge of collapse.

Figures released at the end of January by Federal Customs Administrations showed that Switzerland, a world leader in gold production, sent 158 tonnes of gold to China, a five time increase over November’s sum and nearly three times the volume in December 2015. Read More

“To the moon!” That’s the cliche slogan for so many digital currencies, perhaps made most famous not by Bitcoin, but by , whose users since the beginning have proudly proclaimed the slogan. Read More

In Paris, where the Victoria’s Secret angels are currently preparing to show off the lingerie lines newest models, some of the women are getting ready with 24k.

The Victoria’s Secret Fashion Show is a big night in an Angels career. And so they’re preparing for it in a worthy fashion. A luxury face mask made of 24k is no doubt a statement.

The Angels posted their faces on Instagram recently. Mimi Luzon prepared the masks. A three pack of 24k luxe facemasks runs the Average Jane (or Joe) $300.

The mask contains not only 24k, but also a blend of cell-renewing ingredients.

Mimi’s website states, the masks “have been proven to improve skin’s elasticity, texture and tone and peptides such as Hexpeptide8 – a unique peptide that helps to reduce wrinkle depth as well as relaxing facial tension.”

As for the gold: “The golden leaf is laid on top of the corrective mask and optimises its overall effect. It provides the skin with immediate wellbeing, treats redness and fine lines and gives the skin a more even tone and a healthy glow.”

YouTube channel Crushit recently crushed a gold bar worth nearly $40,000 provided gold company Baird & Co.  Check out the cascading of gold that doing so produced. 

Many individuals claim that gold is a good investment. They usually cite economic uncertainty as a reason for owning gold, which is seen by mainstream investing knowledge as a ‘safehaven’ to protect one’s wealth in times of economic crisis.

But, the YouTube channel Crushit doesn’t really care about savings. They care about views. The video got nearly ten million views in just a few days. 

The 1 kilo or 32 troy ounce gold bar puts on a show demonstrating golds malleability along the way. 

“This will be by far the most expensive crush we’ve done yet here on Crushit,” the host says.

Gold bar came sealed in plastic with corresponding serial number. The bar isn’t huge. More like  aperp weight. “Wow it is really heavy for its size of course its one of the most densest and expensive if you drill a hole through it,” he says. “…The things I could buy with this.” The gold acts similar to liquid as its smashed. 

The hydraulic press indeed has its way with the gold.

“Wow,” the host says, “just look at that it looks like a gold nugget so cool…

The gold wasn’t destroyed, to be sure. Intead, it could easily be sold for face value or melted again into new bullion product. Sure, something was spent on the totally cool experiment, but not $40,000. Whatever it was, it was totally worth it (for Crushit and the viewers, at least).

The Royal Mint partnered with markets operator CME Group to build a gold market with blockchain technology as a means of broadening London’s hip-factor when buying and selling gold bullion.

The Roya Mint, owned by taxpayers, plans to accept trades from the middle of next year on the Royal Mint Gold platform, intended to log each transaction using blockchain. Read More

Islamic Institutions, which follow guidelines issued by a Bahrain based group, now have a new sharia standard for gold-based products so as to incorporate bullion into Islamic finance.

Gold has long been seen as currency in Islamic finance. Investors, however, have yet to speculate on its future value since no clear policy on how to trade gold. Read More

Adolf Hitler’s lost gold has been found, according to a British diver in the  Baltic sea. The ocean explorer’s claims he found gold the Nazi’s stole as they ransacked Europe during World War II horrors.

The discovery is reported to approximate £100 million, has been sought by treasure seekers time-and-time again never to be found…until now. Read More

A weak Australian Dollar has led gold miners there to dig deep, according to quarterly production figures.

In the third quarter, the second largest gold miner after China, Australian output increased 3 percent or 2 tonnes (64,301 troy ounces) to 75 tonnes over the same period from the year prior. This despite heavy rainfall which flooded some pits and derailed operations, according to Melbourne-based Surbiton Associates. Read More

Capital controls often lead people to alternative assets, and it seems India’s decision to phase out 500 notes and 1000 notes is doing just that as India’s jewelry stores were left with empty shelves as gold demand spikes in the region.

Many people came in and cleaned up the shelves with the big notes, but by Tuesday they had disappeared and now a thaw has taken hold over the gold market. There’s panic in India.

People must endure long bank lines to exchange or deposit old currency notes after the government’s demonetization plan to undermine countefeiters and Indians with undeclared income stashed away. 1/4 of India’s economy is on the black market, according to the Finance Ministry, and not many Indians pay income taxes.

Prime Minister Narendra Modi seeks to end corruption. He says the move is a fight for the “honest” citizens against those with “cash lying under the mattresses and in the sacks of the corrupt.” He wants to steer the country, which is historically cash centric, towards bank accounts and digital payments.

“The people who have their vaults can shake governments. They are very powerful people. Should I be scared of such people?” Modi said at a rally Monday in the state of Uttar Pradesh.

“No!” the crowd roared back.

“I have your blessings. That is why I have taken on such a big fight,” Modi said.

Half of the citizens in India are said to use cash, and the decision has caused great concern for these individuals. ATMs are short on cash and who knows how long until they can be reconfigured.

“Parents cracked open their piggy banks, the sick deferred medical procedures, and others struggled to find ways to pay tea sellers, auto rickshaw driver and vegetable merchants who take cash only,” according to the Washington Post. “Civic offices, hospitals and gas stations were instructed to accept the old currency but this edict has not always been followed, resulting in some panic, fistfights and even sporadic reports of looting.”

Thus, few are buying gold. Some jewelers were raided. They were suspected of accepting the old currency and issuing forged receipts. Some shops didn’t open, fearing raids.

Jewelers believe in a few months, sales will continue once more. Gold imports will likely have fallen on the year after posting more than 900 tons last year.

The government added new excise duty on gold in recent years, and last spring a 42-day jewelers’ strike added to the issues in the gold market.

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

Can computers be made of cells? That’s what scientists in Germany (Bezu Teschome and Artur Erbe of Helmholtz-Zentrum Dresden-Rossendorf) look to discover with work published in the journal Langmuir.

Gold prices increased 5% as election results rolled in and declared Donald Trump the U.S. presidential elect, and on November 9th skyrocketed to $1,330 before a hard correction to pre-election levels. The yellow metal currently sits at $1251.30 heading into Friday morning eastern standard time in the US.
Read More

Make money today, sell gold. You can set up affiliate links on your gold related website – or any website – and possibly start earning today but probably not. Read More

Check out Representative Brad Sherman (Democrat, California) make some religious-based assertions about when the Federal Reserve and Janet Yellen should raise interest rates. In a way, Representative Sherman makes some good points. Everything he says is true. Insert “nature” everywhere he says “God” – if you’re secular – and see the point he is making perhaps a bit more clearly. Now, learn about “interest rate” “Federal Reserve” and “Sherman” and things become a bit more mysterious.

GoldSilverBitcoin – People’s Bank of China will release on October 28, 2015 the 2016 Panda coin set.

The coin’s pattern will show the Beijing Temple of Heaven, and feature the country name, reign. The reverse patterns will show a panda climbing a tree, published denomination, weight and fineness. This is different from the 2015 version, which left out weight and fineness, and troubled many precious metals dealers due to this lack of detail.

“I won’t sell it,” one wholesaler told me, who chose to remain anonymous. “Without the date, fineness, and all the details you normally get on not only a government issued coin, but also a private coin, I wouldn’t trust it.” Chinese Pandas are already known as one of the more counterfeited coins on the market. Read More

GoldSilverBitcoin – In many shipwrecks, gold is among the items found on-board a fallen vessel. For goldbugs, that is what makes a recent shipwreck discovery in Greece so intriguing.

A joint Greek-American archaeological expedition in the small Fourni archipelago, an area of merely 17 square miles, has turned up one of the great archaeological finds of 2015, according to Discovery. Read More

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.

Read More

At the third GOP presidential debate Wednesday night, moderator Becky Quick asked Ted Cruz how we could “try and help” working women in the US who “still earn just 77 percent of what men earn.” In a stumbling manner, Cruz ultimately landed on the gold standard to help women.  In a disjointed tirade Cruz began:

“Hillary Clinton and Bernie Sanders and all the Democrats talking about wanting to address the plight of working women, not a one of them mentioned the fact that under Barack Obama, 3.7 million women have entered poverty. Not a one of them mentioned the fact that under Barack Obama and the big government economy, the median wage for women has dropped $733. The truth of the matter is, big government benefits the wealthy, it benefits the lobbyists, it benefits the giant corporations. And the people who are getting hammered are small businesses, it’s single moms, it’s Hispanics.”

Cruz later tied “loose money” to the plight of women. “I think the Fed should get out of the business of trying to juice our economy and simply be focused on sound money and monetary stability, ideally tied to gold,” Cruz said.

Cruz is not the only Presidential candidate to support the gold standard. Rand Paul has called for similar. “We need to think about our currency that once upon a time had a link to a commodity, and I think we should study it,” he once said.

Of course, in the end, it doesn’t seem like Cruz answered the question at hand.

People have bought domains since the advent of the Internet for business, projects and investment purposes. This trend continues to this day and there are implications for the precious metals space. Consider the recent story of the record sale of gold.co.uk. It comes on the heels of a major purchase of another precious metals domain: silver.com. 

British entrepreneur Rob Halliday-Stein paid a record £600,000 for “gold.co.uk“,  the highest price ever paid for a .co.uk domain name. It took him seven years to acquire it. Halliday-Stein trades gold and silver bars and coins. The previous record for a .co.uk domain name was £560,000 for “cruise.co.uk” in 2008.

“Whilst this is a significant amount to pay I strongly believe the domain will prove to be great value over the long term,” Halliday-Stein said of the purchases. In 2012, JM Bullion acquired Silver.com for $875,000.

“We decided we needed a domain name that would help us become the largest online precious metal retailers in the world and believe we have found that with Silver.com,” said Kendall Saville, an investor in Silver.com. This domain purchase was the largest of 2012.

The British billionaire has been in the gold business since 2008. He merely wanted to purchase a small amount himself. He became disillusioned with the poor customer service in the industry, and entered into the space.

“Given what I knew about online marketing, ecommerce, and customer services, I thought that this [bullion trade in the UK] could be done better. So I contacted someone who ran the UK branch of a big European refinery, who offered to do the gold side of the business while I took care of the marketing and customer services,” Halliday-Stein told Vice.

“My intention was to be the UK’s number one online bullion dealer,” said Halliday-Stein, who foresaw the profitability of selling bullion via e-commerce. For a domain he settled on “gold.co.uk.”

In 2008, the domain name belonged to Jack Gold, who requested £50,000 for it. Halliday-Stein opened a lease on the domain. Vice explains what happened next:

But disaster soon struck. Gold separated from his wife, reneged on Halliday-Stein’s agreement, and sold the website to someone else for a quick cash fix.

Halliday-Stein ultimately purchased “bullionbypost.co.uk” instead.  Today, his business does £100 million a year.

“Someone found me out for the purchase of the domain because we were now the biggest gold dealer. They offered a significantly increased price, but to be honest, I wanted the domain—there was a bit of ego at play,” he said.

“It’s a strong brand and it gives us significant SEO benefits of around £100k a year as well,” told Vice. “The thing about the ‘bullion by post’ brand was that it wasn’t right for higher net-worth individuals. It was always aimed at smaller to medium investors. Now our average order on gold is already about three times what our ‘bullion by post’ order is.”

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.

The Bundesbank recently published the list of all its gold bars on its website in its inaugural report. This is the first time the country has done so. Germany has been in the limelight in recent years after requesting that the New York Fed return its gold. The bank has seemed to turn away from storing 65% of its gold reserves overseas with central banks in London, paris and New York. The Bild-Zeitung, in 2012, ran an article entitled “Bring Our Gold Back Home.” Bundesbank officials began making moves in 2013.

Wednesday’s move for Bundesbank to report where its gold bars are to the public is a move in the direction of re-establishing gold as a concept in the global economic dialogue.  The nearly 3,400-tonne reserve of the metal is accounted for in the 2,300 page list.

“Half of Germany’s gold reserves will be stored in Germany by 2020 at the latest,” Carl-Ludwig Thiele, a member of the Bundesbank’s board said. The list is due to be updated annually.

“There were a lot of conspiracy theories about the gold not being there,” said Guntram Wolff, a German who heads Brussels think tank Bruegel, pointing to ‘disenchantment’ among ordinary Germans who have seen the value of their savings dwindle.

“Trust in the Bundesbank has suffered,” said Peter Boehringer, author of a book entitled ‘Bring our gold home’. “The Bundesbank must prove that the gold is there.” Bundesbank officials see practical reasons for the move.

“The gold reserves show stability. The German people are happy to know that the Bundesbank is watching over this wealth, which belongs to them,” said a former Bundesbank official.

“It could be helpful, for instance, in covering some of the costs were Germany to leave the single currency.”

Why are US Mint gold sales on the rise? When you look closely at the news in silver market, of potentially two month delays on many products, the picture becomes clearer. Purchase of gold ETFs has increased, and the US Mint sold 7,500 ounces in gold coins and 871,000 ounces in silver coins. Sales splits in gold coins include 6,500 ounces in American Gold Eagles and 1,000 ounces in American Gold Buffalo coins.

Silver has been the attention of investors this year, in particular with long delays in the metal over the past month. Nevertheless, gold sales have remained robust. American Buffalo 1-ounce gold coins sales in 2015 are ahead of 2014 levels. As of September 23, the Mint reported sales for the year to authorized purchasers of 169,000 of the 1-ounce gold coins.  In the first nine months of 2014, the Mint sold 139,500 Gold Buffalo coins.

Not only as the US Mint seen an increase in sales. As Reuters reported in September, gold coins sales have surged in the US and Europe, with sales from the US Mint reaching levels not seen since the 2013 prices crash. In the third quarter 2015, gold American Eagle sales have had the highest quarter since 2013.

“The industry has been on an absolute tear for the last three months,” Scott Spitzer, chief operating officer at Manfra, Tordella & Brookes in New York, told Reuters. “Every time there’s been a break in the price and there’s been volatility, there has been enormous growth in retail interest.”

Mainstream pundits apparently are warming up to gold. A number of recent bank reports, as noted by NewsMax, have viewed the metal’s near term future somewhat optimistically. Moreover, on the television characters like Jim Cramer have been positive on gold.

For instance, UBS recently asked in a bank report: “Time to warm up to gold?”  UBS states that the market will turn around in gold.

“But the possibility that the market may be overestimating the terminal rate suggests that current weak sentiment and price expectations may also be overdone,” UBS analysts stated. “Positioning has declined considerably over the past couple of years and has now become very light. There may be an opportunity, especially for long-term oriented participants looking to diversify portfolios, to rebuild positions at more attractive levels.”

“Any further downside is likely to be contained, and we expect the market to ultimately find stability, which should provide the foundations for a moderate recovery over the coming years.”
HSBC also recently wrote positively of gold: “It has managed to hold above and build on gains over $1,100/oz. and in non-USD terms, it is back above EUR1,000/oz.,” the bank stated.  “The recovery in oil prices, which … if sustained, may lend additional support to gold. Chinese demand, as indicated by persistent Shanghai premiums, implies decent levels of imports of gold into China. This is offsetting the slowdown in Indian demand. Retail demand for gold and silver coins is also strong. On the negative side, we are unsure about central-bank demand, at least at the moment.”

According to Commerzbank, “Switzerland exported 173.9 tons of gold in August, 8% more than in the previous month. Nearly 70% of this total was shipped to Asia…50% more gold was exported to China. Exports to Hong Kong were actually more than twice as high as in July, which suggests that China also imported more gold from Hong Kong last month.”

“Increased gold demand in India and China should lend support to the gold price,” said the Commerzbank report. On CNBC recently, a trader outlined why current economic conditions could be good for gold.

In the following video, Jim Cramer – popular amongst gold bugs for his negative view of the metals – seems positive on gold prospects.

September 17 version of Dilbert takes a look at gold ownership:

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.