Metals Market Report Archive
Metals Market Report 08-18-2015

The Mike Fuljenz Metals Market Report

August 2015 – Week 3 Edition

Gold rose by more than 2% last week, even while oil fell by more than 5%. Gold rose from $1094 in the London setting last Monday (August 10) to $1119 this Monday, August 17 while gold fell from $45 to nearly $42 per barrel.  Gold got a double boost last week: (1) On Monday, Fed Vice Chairman Stanley Fischer told Bloomberg TV that inflation is too low for the Fed to raise interest rates this year; and (2) China devalued its yuan by about 2% on Tuesday, making the dollar stronger vs. the yuan, thereby giving the Fed far less reason to raise rates next month. Gold usually gets a boost when traders expect the U.S. dollar short-term interest rates to remain near zero, thereby giving gold an “even playing field” with cash.

The Press Continues to Ignore Physical Demand for Precious Metals

Last week, we examined how the mainstream financial press will often report on the low demand for paper-gold products (like gold ETFs and futures contracts), while giving short-shrift to physical demand for precious metals.  Since then, gold has recovered handsomely, but the single gold article in The Wall Street Journal last week (“Gold Prices Rise; Safe Haven from Yuan’s Turbulence,” August 12) failed to add even one short paragraph about the rising demand for physical gold and silver in America and around the world.

We have to turn to Canada for some mainstream press coverage of rising demand and supply disruptions. Canada’s CNA Finance reported on Tuesday that “the U.S. Mint and the Royal Canadian Mint continue to run into serious issues keeping up with retail silver coin demand. After selling out in early July, the U.S. Mint resumed deliveries of Silver American Eagles, but it has since been rationing them out.  And this week brings word of new silver supply-chain problems. Mint officials let it be known they are cutting further back on Silver Eagle shipments, reducing them as much as 20% below already insufficient levels.” 

Silver demand soared in July, when prices were down, causing Mints to run short of supply. The Royal Canadian Mint cited “significant problems with sourcing silver blanks for production of the Silver Maple Leaf.  At least one major wholesaler stopped accepting new orders for the popular coin altogether.  The 1-2 punch of U.S. Mint and RCM rationing and production breakdowns promises to keep buy premiums elevated and cause shipping delays on most government-minted silver coins for the foreseeable future.” 

CNA Finance also reported that private mints are running short on supply: “Private mints have scrambled for raw silver to keep production running at full tilt.  Major national depots, such as Los Angeles, have run dry … and delivery delays have lengthened as suppliers and retailers scramble to fill orders.”

This combination of increased demand and delayed deliveries has created extra calls to dealers, resulting in a rising demand for rare gold coins, since bullion coins are in short supply or simply not available. With premiums rising on bullion coins due to short supplies, many investors made the switch to rare gold coins.

Mike Fuljenz Latest Gold Coins Book Wins NLG 2015 Book of the Year Award 

(Rosemont, Illinois) – The acclaimed gold coins reference book by Michael Fuljenz, Type Three Double Eagles 1877 – 1907, 2nd Edition, has received the Book of the Year Award from the prestigious Numismatic Literary Guild (NLG).  The NLG is a nonprofit organization composed of the country’s leading rare coin hobby/trade marketplace editors and writers.

“I’ve received many honors for my writing the past three decades, but this is the first time I’ve received the Book of the Year award.  I’m grateful for the recognition given to me by the top literary organization in numismatics citing it as the work with the greatest potential impact on numismatics,” said Fuljenz.  

Fuljenz also won two other NLG 2015 awards in the audio-visual category: Best Radio Report for “The Coin Show With Mike Fuljenz,” on KLVI 560 Radio in Beaumont, and Best Television Report for “The Coin and Precious Metals Report” on Fox 4 KBTV in Beaumont.

Over the years, he now has won 56 awards from the NLG for his consumer protection and education newsletters and earlier books and articles.

The awards were presented on August 13, 2015 during the World’s Fair of Money in the Chicago suburb of Rosemont, Illinois.

Fuljenz also received an award of appreciation from the Numismatic Crime Information Center (NCIC) and its founder, former Pantego, Texas Police Chief Doug Davis.  The award plaque reads: “Presented to Mike Fuljenz in recognition of your continuous support, dedication and contributions to NCIC in the fight against numismatic crime.’

The nonprofit organization assists law enforcement agencies across the country to help solve crimes involving rare coins and banknotes.  Fuljenz provided more than two dozen Chicago area law enforcement officers with crime solving tips during a day-long seminar hosted by Chief Davis and his organization.

Fuljenz has previously been a featured speaker at other Numismatic Crime Information Center seminars in other cities, and he is on the Board of Directors of Crime Stoppers in his hometown of Beaumont, Texas.

 

Metals Market Report Archive >


Important Disclosure Notification: All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Publisher's knowledge at this time. They are not guaranteed in any way by anybody and are subject to change over time. The Publisher disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein. Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability. All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions. Arbitration: This company strives to handle customer complaint issues directly with customer in an expeditious manner. In the event an amicable resolution cannot be reached, you agree to accept binding arbitration. Any dispute, controversy, claim or disagreement arising out of or relating to transactions between you and this company shall be resolved by binding arbitration pursuant to the Federal Arbitration Act and conducted in Beaumont, Jefferson County, Texas. It is understood that the parties waive any right to a jury trial. Judgment upon the award rendered by the Arbitrator may be entered in any court having jurisdiction thereof. Reproduction or quotation of this newsletter is prohibited without written permission of the Publisher.