September 19th, 2016

OCTOBER 2016 MARKET REPORT

USM_2016PlatAmEag_obv
Bulls Are Still Running in Gold, Silver Markets

The running of the bulls in Pamplona, Spain, ended in July, but bulls in the precious metals market paid no attention to the calendar. Gold, silver and other precious metals had another strong month in July and kept climbing higher in the opening week of August.
Gold finished July at $1,350 an ounce—an increase of 27.4 percent since the beginning of the year, when the yellow metal was worth $1,060. Silver ended July at $20.34 an ounce—a stunning 47.2 percent higher than its year-opening value of $13.82. The upward trend continued unabated in the early days of August, as “dog days” turned into “bull days” for collectors and investors.
Bulls may wreak havoc in china shops, but bullishness works wonders in coin shops—especially those that handle bullion-related coins. The run-up in gold and silver has stimulated sales of all coins containing those metals—both bullion and numismatic—during 2016.
Gold coins struck at the Carson City Mint have been particularly active, with strong demand for those in grades of Extremely Fine and higher. These coins capture the essence of the Wild West and benefit, as well, from consistently low mintages.
As sales and prices of collectible gold coins—especially double eagles—have surged throughout the year, we have seen premiums over melt value shrink for common-date gold type coins in lower grades.

Read the entire column in the October 2016 issue.

October 2016