Metals Market Report Archive

The Mike Fuljenz Metals Market Report

December 2022 - Week 3 Edition

Gold Jumped Significantly Since Fed’s Interest Rate Hike

Gold has traded between $1,785 and $1821 since Wednesday, December 14, after the Federal Reserve raised rates another 0.5% and issued a downbeat report on potential future rate increases in 2023. Previously, gold traded at a six-month high above $1,810, but the Fed’s determination to keep raising rates to fight the inflation (which they caused) will likely push us into recession next year and make gold an even better economic hedge.

All this flip-flopping at the Fed makes one wonder what the Fed’s 400 Ph.D. economists learned for all that tuition money they and their parents once spent, after over-inflating in 2020, then falsely calling inflation “transitory” all during 2021. Their actions in 2022 caused the most rapid rise in rates in 40 years.

Where We Stand with Coins and Metals as 2022 Draws to a Close

Silver is slightly better than break-even for 2022, and gold is within $6 an ounce at $1821 for 2022, while the S&P 500 is down 20%, the Dow index is down 10% and NASDAQ is down over 30%. However, gold and silver have soared by double-digits in terms of many other major currencies this year, since the U.S. dollar has been so strong. The Wall Street Journal Dollar Index is up 9.4% through last Friday, so gold is up by double-digits in terms of the British pound, the Indian rupee, the Japanese yen and several other European currencies.

Another positive is that selected PCGS- and NGC-certified rare coins have performed very well, despite the lackluster performance of gold and silver bullion in dollar terms. They have been mostly unaffected by the disappointing management of 2022 American Eagle gold and silver bullion coin distribution by the U.S. Mint, which includes long delivery delays and high premiums. Many of the coins we have liked the most and promoted most often – like the better date $10 and $25 American Gold Eagles, the gold Indian series from the $2-1/2 to $10 denominations and the Type Two and Type Three Liberty Double Eagles – have performed very well this year.

The wide-ranging PCGS3000 Rare Coin Index is calculated once per month. So far, in 2022, it has risen 12.5%, from $63,715.25 as of the final 2021 reading (December 16, 2021) to the most recent $71,439.15 valuation (as of November 16, 2022), because many of these coins rose independently of the price of bullion.

One other point to remember in December is that now is not the time to sell your rare coins, as you will not likely get the best price for your rare coins. Because some states have an end-of-the-year inventory tax, this is the time of year when trading volume slows down and most dealers engage in counting and/or valuing their inventory. If you put a coin up for sale, you may get a lower estimate. Trading picks up in the first part of the year, so if need a coin, be sure to let your account representative know and be sure to put it on our “wish list” and they will be ready to search for it in January.  

Speaking of the New Year, I expect the foolishness of the Fed, the escalation of Russia’s war with Ukraine, a possible Chinese invasion of Taiwan, continued inflation and rising partisan battles in Congress over rising deficit spending at high-interest rates to push gold up to $2,200 and silver to $28.

Listen to Morgan Freeman’s “Christmas Scale” This Week

Each year, as the Christmas Season comes upon us, I take a few moments to think back on different aspects of my life, my family and then, look forward to the future. Several years ago, I came across a story from the actor, Morgan Freeman, sharing a lesson he learned from his late mother, years ago.

Freeman has played God in two movies, “Bruce Almighty” (2003) and the sequel, “Evan Almighty” (2007). The only actor to exceed that total playing the deity was George Burns (1896-1996), in “Oh, God!” (1977), “Oh, God! Book II” (1980) and “Oh, God! You Devil” (1984).

I was inspired by Freeman’s story of how his mother, a piano player at their local church, taught him a new version of “The Christmas Scale,” only played after she had died. Click the Christmas Scale link above to hear his story, in a production from Igniter Media. 

We can all hope that Morgan Freeman, like George Burns (and Bob Hope), will reach 100, in 2037.

Merry Christmas!
Mike Fuljenz


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