BULLION BLURB - Our Take on the Bullion Industry and other interesting news
Posted on May 01, 2017
Interesting month of April in the bullion world – mint gold coin sales were weakest since December 2015. It’s fairly obvious that demand is down. If only a one or two-month thing, this might mean nothing. However, if it’s longer and prices continue to fall, this is negative for the market in the short term.
Now, this could simply mean that we just closed out the 2016 tax year and people are waiting to see what their tax issues might be or it may mean that wholesale supplies are full and they don’t need any more coins from the mint.
But, here’s what we think…the overall economy is weird right now and people are afraid of the stock market. After 2008, everyone is certainly more skeptical about it. But, they remain addicted to it and the ebbs and flows it provides…it can be intoxicating. People generally don’t buy physical gold because they don’t really understand it or how it fits into their life or portfolio.
“Where do I store it?”
“How do I turn it back into money?”
These are all common questions asked by the general public and the truth is it is a valuable asset to diversify a portfolio and provide a hedge against inflation. If the Fed raises interest’s rates like they said they plan to do, then both silver and gold should rise. But, if the market continues to roar, people want their money where they can watch it grow daily. We advise a combination and diversification to all investment portfolios – you should have a percentage of investable monies in precious metals as a hedge against not just inflation but also the possibility of the worst case scenario.
Have questions, contact HCC Rare Coins today.
Submitted by Howard Cook