The Michael Fuljenz Metals Market Report: July 2012, Week 4 Edition
Gold and silver were essentially flat last week, with minor moves up and down, but gold performed well in terms of other currencies. On Friday, for instance, gold's $2.30 gain was composed of a $13.85 currency-neutral gain combined with an $11.55 penalty due to a stronger dollar. Specifically, the euro sank from $1.23 Thursday to $1.21 Friday, meaning that gold continues to rise in euro terms. Once the dollar starts matching the decline in the euro, we should see gold move decisively above $1600.
- Gold 52 weeks ago (July 22, 2011): $1602.00
- Gold's average price during 2012: $1644.60
- Gold's London Low for 2012: $1537 on May 16
- Gold's London High for 2012: $1788 on February 29
You Can Own Coins Just Like Those In The Smithsonian
Did you know the United States has a coin collection? You can own gold coins that actually rival those in the National Numismatic Collection housed at the Smithsonian in Washington, DC.
During the early years of the 1800's, the United States Mint in Philadelphia began setting aside particularly nice examples of coins struck there as a matter of record or celebration of excellence. This resulted in the incredible U.S. Mint Collection.
During the 1920's it was transferred to the Smithsonian Institution where it resides today in the National Museum of American History.
The National Numismatic Collection contains one of the largest cabinets of United States coins ever assembled with high grades and rare varieties not seen elsewhere. I was fortunate to privately view this amazing collection with the Smithsonian's Senior Curator of Numismatics and Louisiana Congressman Jimmy Hayes years ago. I left in awe.
Today, you too can own classic rare gold coins that rival those in the legendary National Numismatic Collection. For decades I have helped satisfied customers nationwide acquire coins that equal or surpass the quality of those in the Smithsonian Institution. Call now to find out about the availability of gold coins in our multimillion dollar inventory that meet or exceed the quality of those in the National Numismatic Collection. And if you are interested in how a coin you already own compares to the top examples held in the Smithsonian, just ask your knowledgeable representative. We are glad to research this information for you, our valued customer.
A Return to "Stagflation" (Rising Inflation in a Slowing Economy) is Good for Gold
Last Tuesday, the Consumer Price Index (CPI) was announced as unchanged, but prices for life's greatest necessity, food, are beginning to soar due to what could turn out to be the worst drought in 50 years. So far, the current July 2012 drought rivals the devastating June 2008 crisis, when all grain prices soared to the stratosphere, along with $150 oil at one point. Today, energy prices are lower, but food is threatening to rise fast enough that it might pull some of the other commodities up along with it, as happened in 2008.
"Stagflation" (stagnation + inflation) was gold's winning formula in the 1970s. The economy basically went nowhere for a decade, while key commodities kept rising in price. Last week, we saw some more signs that the U.S. economy is slowing down again: (1) Retail sales fell by 0.5% in June, matching recent monthly declines; (2) the index of leading economic indicators (LEI) fell 0.3% in June, erasing May's gains; and (3) new weekly jobless claims rose 34,000 to reach 386,000.
In reviewing the U.S. economy last week before Congress, Fed Chairman Ben Bernanke, said we face two new risks - a slowdown in the U.S. economy as part of to the global slowdown in Europe and Asia, and the coming "financial cliff" next January 1, when a whole series of new taxes will take effect, unless Congress passes a new bill to stop the automatic increases. Bernanke said these tax increases could push a weak economy into recession. He predicted another 1-2 million jobs would be lost in such a scenario. It's likely that gold will rise and the stock market will fall if America stumbles its way into another recession. Looking back, the 1970's had two of the biggest bull markets in the history of the rare gold coin market! Are you prepared?
The Gold Coin That Will Become "The Face of Numismatics"
One important gold coin from the early 20th century could someday become "the Face of Numismatics" in the 21st century. It's a gold coin so valuable and so beautiful that in the future you'll probably see it on almost every national news story about rare coins, and you'll see replicas advertised on TV. What's the gold coin? In a future Metals Market Report I'll tell you about it, and why I and many other numismatic experts believe someday it will be widely considered the most important and valuable coin an individual can own -- and how it will affect you and your gold coin investments. (Hint: I'm currently working on a feature article related to this special gold coin. It's expected to be published in a national magazine by the end of the year.)
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