June 2021 - Week 1 Edition
Gold Surpasses $1,900! Get You Some!
Gold surpassed $1,900 last week and stayed above that new floor for the rest of the week, closing out May at $1,912 an ounce. Gold had not closed above $1,900 since the first week of January and silver surpassed $28 an ounce for only the second time since September 1, 2020, so the metals were on a strong surge going into Memorial Day. In the past 10 days, the 10-year Treasury yields have come down about 10 basis points, from 1.68% to 1.58%, giving gold an advantage while inflation is rising – pushing “real” interest rates further below zero. Meanwhile, the U.S. Dollar Index continues to meander lower, falling 1.5% during May, while the Biden Administration continues to over-spend and the Federal Reserve continues to be “accommodative” or more commonly known as, printing money. Joe Biden has been good for gold and the gold coin market! Call your account representative today to find out the best gold and silver option for you!
Month-End Summary: Precious Metals Beat Stocks Again in May 2021
During May, Gold and Silver continued to rise, outpacing a flat U.S. stock market by a long distance, while the previously high-flying Platinum Group Metals corrected by 2% and 3%, respectively.
The month of May has historically been flat for stocks, and this May was no exception. The S&P 500 rose just 0.47% this May. Although the Dow rose 1.93%, Nasdaq fell -1.53%, so May was a wash for stocks.
Gold Bullion Sales at the U.S. Mint Sales Rose 360% in May
--And +40% for the Year to Date
During May 2021, the U.S. Mint sold 20,500 ounces of Gold American Eagles vs. only 11,500 ounces in May of 2020. American Buffalo gold coins were even more popular, with 44,000 one-ounce gold coins sold in May 2021 vs. just 2,500 ounces in May 2020. Despite the huge surge in gold sales during March 2020, due to the advent of COVID, gold bullion coin sales at the U.S. Mint through the first five months of 2021 was 40% larger. (Total Silver American Eagle sales were not available as of Wednesday morning, June 2.)
Remember, the U.S. Mint also limited sales as they prepared for the July launch of the Type II gold and silver eagles.
There is great interest in this year’s American Eagle series as there will be a design change on the reverse coming this July, the first design change since the series debuted 35 years ago in 1986. There will also be a significant debut of a special series of Morgan and Peace Silver Dollars to honor the centennial of the year in which the two series made their transition in 1921 – the final Morgan Dollar mint year, and the first Peace Dollar mint year. These series will also debut this fall, making 2021 a “Year of Transition.”
We continue to see steep premiums on American Eagles due to delays in deliveries, limited U.S. Mint sales and high demand. Be sure to call your representative and inquire about bullion coin options if American Eagle premiums rise too high. In transition years like this, high premiums are to be expected as collectors and investors seek out key dates like transition years where mintages can be divided between two design types. We’ll always keep an eye out for the best prices and timeliest delivery dates.
Store Your Coins Safely
One of the more insane ideas to come out of the extreme left wing in the last year was to “Defund the Police.” The idea is least popular in poor neighborhoods, where crime is their greatest fear. Even in richer suburbs, a call to 911 is often pointless during a robbery, as response times are lengthening due to personnel cuts and early retirements in police forces across the land. The New York Post reported last month that, “More than 5,300 NYPD uniformed officers retired or put in their papers to leave in 2020 – a 75 percent spike from the year before.” There is also a shortage in new recruits. “People don’t want to be police anymore,” a Philadelphia officer told a reporter there. All this comes in the wake of anti-police rhetoric and “defund the police” campaigns, where too many people with cameras are looking to catch police officers making even the most minute mistake, despite the low pay and life-threatening dangers of that career. These policing decisions often have to be made quickly and Monday morning quarterbacks seldom acknowledge that.
Peggy Noonan wrote a great column in the weekend Wall Street Journal, called “Defund the Police? No, Fund Them Better.” The essence of her column was that police cadets need more training, not less. Some states require 2,000 hours of training for cosmetologists but require only 500 to 750 hours of training for police cadets, who must negotiate life-and-death situations with violent or mentally ill citizens regularly.
Due to a rising crime wave and slower police response times in some cities, we believe it is wise to store most of your coins in a bank safe deposit box rather than at home. We also have storage facilities in our Beaumont offices, guarded by a diversified team of law enforcement personnel virtually around the clock. We are very involved with our law enforcement community through Crime Stoppers and the 100 Club, and we have won numerous honors from our local police and other organizations for helping to stop counterfeiters and scams against coin buyers, so we have an excellent relationship with these officers helping to guard our premises.
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