The Michael Fuljenz Metals Market Report: April 2013, Week 3 Edition (Part II)
Gold and silver fell sharply last Friday and Monday in the first major correction in the precious-metals bull market, which began in 2001. Pundits have compared this correction to the gold and silver"bubble" popping in 1980, but there is no meaningful comparison. In 1980, silver collapsed from $50 per ounce to barely $10 in just over two months, while gold's price was sliced nearly in half, from $850 to $480 in the same two months. This time, gold peaked 19 months ago, with a gradual decline, not a"popping of a bubble." This gradual decline turned into a major sell-off on Friday and Monday, but that attack may have been a one-time event. Late Monday, gold hit $1321 and silver $22, so both are well up from their lows.
Physical Demand is Still Strong
When paper-gold investors sell their futures, options, gold ETFs and gold mining shares, they can push the price of gold up or down in the short-term, but physical demand should continue to keep the gold bull market alive this year and future years. The world is getting richer and more people are buying real gold.
On Tuesday, April 16, sales of American Gold Eagle coins hit 33,000 ounces, the highest one-day total of the year. Tuesday's sales topped the sales from all of last week, so coin buyers are certainly bargain hunters! Sales for the month of April, although it's barely half over, have already surpassed the monthly totals of both March and February. The U.S. Mint also sold 2,500 ounces of American Gold Buffalo coins Tuesday, making 35,500 ounces of gold sold on Tuesday. If the week ended then, it would already rank as the highest week for gold coin sales since the first full week of the year, January 7-11, 2013.
Silver sales are also soaring. The Mint sold 503,000 ounces of American Silver Eagles on Tuesday, bringing the year-to-date total to 16,438,000 ounces. Last year, Silver Eagle sales didn't reach 16 million until June 19. According to the U.S. Mint, American Silver Eagle coin sales were up 40.2% in the first quarter of 2013 vs. 2012, despite the long delays and halts in production of Silver Eagles in early 2013.
The Mint's figures also show that 292,500 ounces of American Gold Eagles were sold in the first quarter, up 39% from the 210,500 ounces during the first quarter of 2012. More Americans are buying real gold!
The same trend is developing overseas. There is already some renewed buying in India, where customers are more price-sensitive than in America. With the wedding season and other holidays coming in May, Indian demand may keep rising. Physical gold sales should rescue gold from the recent gold market panic.
NGC President Rick Montgomery Meets With Michael Fuljenz and Our Team
Rick Montgomery, President of Numismatic Guaranty Corporation, met with our account representatives in Beaumont, Texas on April 10, 2013. NGC is one of the world's largest numismatic certification companies.
During his visit, Montgomery discussed the importance of third-party authentication and grading of coins and how it benefits our customers by providing increased consumer confidence and liquidity in the numismatic marketplace.
He explained the processes NGC uses to evaluate coins for authenticity and grade, and the security involved in the NGC protective holders that house their certified coins.
Rick and I worked closely together in the 1980's as graders at ANACS (then the American Numismatic Association Certification Service), and we taught grading and counterfeit detection classes together for collectors, dealers and even Secret Service and FBI agents.
This was Montgomery's third visit to Beaumont.
Rick is one of the foremost rare coin authenticators and graders in the country, and we were honored to have him visit. We sell a lot of NGC-certified coins and respect their products.
Catholic Charities Honors Mike and Karen Fuljenz With Humanitarian Award
Mike Fuljenz and his wife Karen were honored with the 2013 Humanitarian Award presented by Catholic Charities of Southeast Texas. More than 350 people attended the 22nd annual "Breakfast with the Bishop" event in Beaumont, Texas where the award was presented on Saturday, April 13, 2013.
"The award was presented in recognition and appreciation of their service to the community of Southeast Texas," said Carolyn R. Fernandez, President and Chief Executive Officer of Catholic Charities of Southeast Texas.
Karen and I are honored to receive this award. We applaud the tireless work of Catholic Charities to provide assistance to all those in need in our community.
Bishop Curtis Guillory led the attendees with an opening prayer at the fund-raising breakfast where celebrities from local radio and television stations flipped hundreds of pancakes to serve the guests.
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