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Thursday, August 21, 2008

American Eagle Gold Coins Sales Suspended

I liked this article on Apmex's blog. The US government suspended its sale of 1 ounce American Eagle gold coins. There still is a shortage of 1 ounce American Eagle silver coins.

Allegedly, the US government has huge gold reserves somewhere. Why can't they just use those reserves to keep minting coins? Are the gold reserves gone?

Someone mentioned that this stinks of gold market manipulation. The price of gold is cheap, but there's no gold supply for minting coins?

Another rumor is that dealers are refusing to sell their inventory, since prices are so low. This is rational behavior, and is not immoral. If you believe the gold price is artificially low, then you should buy gold and hold onto it.

American Eagle silver coins are minted with metal purchased on the spot market. I thought that American Eagle gold coins were minted with metal in US government reserves?

If you believe that the gold market is manipulated downward, then buy gold! If you use leverage via futures, then you risk margin calls if the price declines. If you have an unleveraged long position and physical possession, then the spot price of gold is irrelevant. You can just hold onto your metal. The real value of an ounce of gold should be mostly constant.

Fluctuations in the spot price of gold are really fluctuations in the value of the dollar and symptoms of gold market manipulation.

That is a symptom of what happens during hyperinflation or in a Communist economy. Prices are cheap, but there's no product available for sale!

I wouldn't bother paying a premium for American Eagle gold coins. You can still buy bullion bars/rounds.

6 comments:

Anonymous said...

You're absolutely right, bullion bars are way better than coins. But, most people are just like the most people; they want coins, because, they believe in three myphs: gold is worthy because of it's beauty, eagle coins won't be confiscated, coins are easier to trade. Of course, you know all of this to be bullshit.

Anyway, this shows us that the demand for gold is raising among those very new to gold, or those following the hype. This can be good and bad too. RE hype helped to create financing, but killed those who forgot to stick to value.

The eagles are not for sale precisely because the government wants to show low prices on gold, so low, as to scare the majority into a powerful sell-off event. Of course, it doesn't want to sell at those low-low prices, so therefore the "glitches" in production of eagle blanks.

E-bay price, (the free market) in the meanwhile, is $900.

This is not the last contango just yet, but I believe it is coming...

flowers said...

Hobbies plays a key role for the people who really came to the earth for this purpose, one or the other day people around the world would be discussing about the people who have collected Many World Coins,monuments, old stamps, old notes who will be positioned in the world of Guinness records.

American Eagle Gold Coins said...

I think more information should be provided in the video!! Gold in an American Eagle Gold Coins Sales Suspended

GOld Bullion said...

save your future by saving your wealth best choice is gold bullion
Thanks for the great reading, we buy gold bullion in a recession. I will pass this on to our ira clients to read

Gold Eagle Coin said...

I bought the Liberty Quarter eagle which holds the distinction of keeping the same design for the longest time in American history for gold coins.

Gold Coins said...

Every one want to save there wealth physically gold bullion is good choice.Thanks for the great reading, we buy gold coins in a recession. I will pass this on to our Ira clients to read.

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