June 8, 2026

Archives for March 2009

Gold, Silver & Platinum 2009 First Quarter Performance

March 31, 2009 by Leave a Comment

With the first quarter at an end, let’s take a look at the performance of gold, silver, and platinum so far this year.

When putting the numbers together, I knew what to expect, but its still surprising to see where the final numbers landed. Gold, silver, and platinum’s performance relative to one another has basically been turned upside down from the 2008 annual performance.

2009 First Quarter Gold, Silver, and Platinum Performance
30-Dec-08 31-Mar-09 Change Percent
Gold 869.75 916.50 46.75 5.38%
Silver 10.79 13.11 2.32 21.50%
Platinum 898.00 1,124.00 226.00 25.17%

For 2008, gold had performed the best with a gain of 4.32%, followed by silver with a loss of 26.90%, with platinum in last place with a loss of 41.31%.

As you can see the performance for the first quarter of 2009 has been the opposite with platinum performing best with a gain of 25.17%, followed by silver with a gain of 21.50%, with gold in last place with a gain of 5.38%.

Platinum and silver were in some respects recovering from the beating they took last year. Over the past several years gold has emerged as more of a steady performer, as compared to the more volatile performance of the other metals, commodities, equities, real estate, etc. It’s ironic that whenever a mainstream publication discusses the possibility of investing in gold, they never fail to caution about gold’s “volatile” prices.

At any rate, precious metals outperformed stocks for the quarter, mostly by a wide margin. The Dow, S&P 500, and Nasdaq lost 14.29%, 12.81%, and 3.07% respectively.

Filed Under: Gold, Platinum, Silver Tagged With: , , ,

Growing Demand for Gold, When Will Prices Soar?

March 25, 2009 by Leave a Comment

Sorry for the lack of posts lately. Let’s get back into the swing of things with a round up of some gold and silver related stories for the past few days to bring things back up to speed.

Federal Reserve Will Fail with Quantitative Easing

Reaction following the Federal Reserve announcement that they will purchase $300B of long term Treasuries.

Bugs triumpant about gold, terrified about US

More reactions from gold bugs who are “triumphant — and terrified.”

Bloomberg TV archive carries Murphy interview

Catch the Bernard Lo interview with GATA Chairman Bill Murphy. It also might set the stage for another segment to debate the matter of gold price suppression.

Bank crisis spawns a new kind of gold rush

An article out of Canada describing what it calls “a bandwagon effect for investment in precious metals.” Many people are demanding physical possession and purchasing 400 ounce blocks of gold.

Japanese Young Boost Gold Buying Amid Recession

An article from Bloomberg about the growing and broadening demand for gold. It describes one firm’s gold accumulation program, which allows customers to have a certain amount automatically debited from their bank account each month and invested in gold.

Why the price of gold is not yet soaring?

A question that is on many people’s minds, especially in light of numerous articles like the ones above. Temporarily putting aside government and central bank manipulation, here’s an excellent evaluation of some of the other forces at work.

Put simply, in order for the gold price to go substantially higher, investment demand must offset declining jewelry demand and, in addition, absorb all the scrap supplies that are now hitting the market as individuals all over the world scramble for cash in a very, very bad economy.

Wealthy individuals are certainly buying the stuff but ordinary investors are still in shock.

To get a really good “gold bubble” going (not to be confused with conditions today that some journalists confuse with the real thing), you need broad participation – lots of embraces from lots of average Joes.

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US Mint Suspends Production of More Gold and Silver Coins

March 14, 2009 by 51 Comments

The United States Mint has officially announced the suspension of another slate of gold and silver products. The affected products are 2009 dated American Gold and Silver Eagle coins produced for collectors. These coins are considered collectible versions of the bullion coins.

Although these are collectible coins, they represent a sizable amount of precious metals sales and represent a method of gold and silver investment for many individuals. Last year, the US Mint sold 1,157,911 ounces of silver in the form of Silver Eagle coins minted for collectors. They also sold 155,740 ounces of gold in the form of Gold Eagle and Gold Buffalo coins minted for collectors.

The following message was posted on the US Mint’s website in the space where the collectible Gold Eagle coins typically appear. The proof coins has been offered uninterrupted since 1986. The uncirculated version has been offered since 2006.

Production of United States Mint American Eagle Gold Proof and Uncirculated Coins has been temporarily suspended because of unprecedented demand for American Eagle Gold Bullion Coins. Currently, all available 22-karat gold blanks are being allocated to the American Eagle Gold Bullion Coin Program, as the United States Mint is required by Public Law 99-185 to produce these coins “in quantities sufficient to meet public demand . . . .”

The United States Mint will resume the American Eagle Gold Proof and Uncirculated Coin Programs once sufficient inventories of gold bullion blanks can be acquired to meet market demand for all three American Eagle Gold Coin products. Additionally, as a result of the recent numismatic product portfolio analysis, fractional sizes of American Eagle Gold Uncirculated Coins will no longer be produced.

A similar message is posted in the section where collectible American Silver Eagle coins would typically appear. The proof coins have also been offered uninterrupted since 1986 and the uncirculated coins since 2006.

Production of United States Mint American Eagle Silver Proof and Uncirculated Coins has been temporarily suspended because of unprecedented demand for American Eagle Silver Bullion Coins. Currently, all available silver bullion blanks are being allocated to the American Eagle Silver Bullion Coin Program, as the United States Mint is required by Public Law 99-61 to produce these coins “in quantities sufficient to meet public demand . . . .”

The United States Mint will resume the American Eagle Silver Proof and Uncirculated Coin Programs once sufficient inventories of silver bullion blanks can be acquired to meet market demand for all three American Eagle Silver Coin products.

This adds to the lengthy list of 2009 dated precious metals products that have been “temporarily delayed” or suspended by the US Mint. In my previous post Actions of the US Mint Discourage Gold Ownership, I mentioned the delayed release of 2009 Gold Eagle fractional coins, 2009 Gold Buffalo coins, and all 2009 Platinum Eagle coins. The delay, which was first announced in November 2008, continues with no further explanation provided.

For those keeping track, here is a list of the US Mint’s 2009 precious metals products that have been “temporarily delayed” or suspended:

  • 2009 American Gold Eagle 1/2 oz. (bullion)
  • 2009 American Gold Eagle 1/4 oz. (bullion)
  • 2009 American Gold Eagle 1/10 oz. (bullion)
  • 2009 American Platinum Eagle 1 oz. (bullion)
  • 2009 American Platinum Eagle 1/2 oz. (bullion)
  • 2009 American Platinum Eagle 1/4 oz. (bullion)
  • 2009 American Platinum Eagle 1/10 oz. (bullion)
  • 2009 American Gold Buffalo 1 oz. (bullion)
  • 2009-W Proof American Gold Eagle 1 oz. (collector)
  • 2009-W Proof American Gold Eagle 1/2 oz. (collector)
  • 2009-W Proof American Gold Eagle 1/4 oz. (collector)
  • 2009-W Proof American Gold Eagle 1/10 oz. (collector)
  • 2009-W Proof American Gold Eagle 4 Coin Set (collector)
  • 2009-W Uncirculated American Gold Eagle 1 oz. (collector)
  • 2009-W Proof American Silver Eagle (collector)
  • 2009-W Uncirculated American Silver Eagle (collector)

In addition, the following precious metals related products were discontinued by the US Mint for 2009. These discontinuations were announced in November 2008. Amidst the environment of unprecedented demand for precious metals, the US Mint determined that these products were “unpopular.”

  • Uncirculated American Gold Eagle 1/2 oz. (collector)
  • Uncirculated American Gold Eagle 1/4 oz. (collector)
  • Uncirculated American Gold Eagle 1/10 oz. (collector)
  • Unriculated American Gold Eagle 4 Coin Set (collector)
  • Uncirculated American Gold Buffalo 1 oz. (collector)
  • Uncirculated American Gold Buffalo 1/2 oz. (collector)
  • Uncirculated American Gold Buffalo 1/4 oz. (collector)
  • Uncirculated American Gold Buffalo 1/10 oz. (collector)
  • Unriculated American Gold Buffalo 4 Coin Set (collector)
  • Proof American Gold Buffalo 1/2 oz. (collector)
  • Proof American Gold Buffalo 1/4 oz. (collector)
  • Proof American Gold Buffalo 1/10 oz. (collector)
  • Proof American Gold Buffalo 4 Coin Set (collector)
  • Uncircualted American Platinum Eagle 1 oz. (collector)
  • Uncircualted American Platinum Eagle 1/2 oz. (collector)
  • Uncircualted American Platinum Eagle 1/4 oz. (collector)
  • Uncircualted American Platinum Eagle 1/10 oz. (collector)
  • Uncircualted American Platinum Eagle 4 Coin Set (collector)
  • Proof American Platinum Eagle 1/2 oz. (collector)
  • Proof American Platinum Eagle 1/4 oz. (collector)
  • Proof American Platinum Eagle 1/10 oz. (collector)
  • Proof American Platinum Eagle 4 Coin Set (collector)

That makes a total of 38 precious metals products which have been delayed, suspended, or discontinued by the US Mint.

As it currently stands, investors or collectors looking to purchase newly minted American Eagle or American Buffalo precious metals products have only two options available. These are the 2009 1 oz. American Gold Eagle and the 2009 1 oz. American Silver Eagle. Both of these products continue to be subject to rationing.

Filed Under: US Mint Tagged With: , , ,

Gold Coin Shortage and Sales Trends, Dollar-Gold Relationship

March 11, 2009 by Leave a Comment

With gold fluctuating around the $900 level, let’s take a look at some thought provoking gold and silver related stories from various blogs and news sites.

Jim Rogers Interview

Incredibly, he claims that there is no shortage of gold and silver coins.

What happened was all the dealers went and bought huge silver supplies back when silver was at $20 and now their stuck and they don’t want to take a loss and so they are telling people they don’t have coins. I promise you sir if you offer $25 for silver coins you’d get all you wanted. There is no shortage.”

He goes on to say the same thing about gold coins.

Gold Coin Shortage Likely To Become Chronic

And here’s the more popular conclusion- Yes, there is a gold coin shortage. This is supported by anecdotal evidence, gold coin rationing by world mints, and high prices paid for physical gold and silver in liquid markets.

APMEX Gold and Silver Sales Data

Some first hand sales data from precious metals dealer APMEX. From 2007 to 2008 the number of orders for gold increased 262% and the number of orders for silver increased 358%.

With economy tanking, ‘liberty’ coins made of silver are paying off

Remember the Liberty Dollar? It seems that in commerce, most vendors are more than happy to take them in lieu of paper money.

Where Do You Keep Your Gold?

If you are hoarding physical gold, where do you keep it? Here’s an examination of the pros and cons of various methods of gold storage.

Dollar Gold Correlation

Briefly the US Dollar and Gold had a price correlation of 100%, taking into consideration the prior 15 trading days. The odd correlation has recently reversed sharply.

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What Can Google Trends Tell Us About Gold?

March 5, 2009 by 2 Comments

Every now and then I find myself playing around with Google Trends. For anyone who hasn’t tried it before, it’s a Google product in the early stages of development that allows you to see historic search volume trends for given search terms. When I recently ran some gold related searches, I came up with some interesting results.

Here are the results for the search volumes for “Sell Gold” and “Buy Gold” followed by a chart of gold scaled to align. I added the red arrows to emphasize the extremes.

The large spike in search volume for “Sell Gold” appeared just as gold was hitting its peak. Similarly, there was a spike of search volume for the term “Buy Gold” just as gold reached an intermediate low. The broad, aggregated intent of internet searchers as determined by Google Trends called the exact high and low for gold. Maybe Google Labs has created a perfect communicator for the “wisdom of internet searches.”

What does the internet crowd say about gold’s run to $1,000 and subsequent fall back to the $900 level? The response seems mixed. There were small increases in both the “Buy and “Sell” searches that don’t seem to suggest strong conviction in either direction. I have a feeling that the Google Trends indicator might work well for extremes or broad trends, but not so well for other situations.

To finish, here’s one final Google Trends search that is worth noting. Below are the results for “Gold Investment.” If a search term does not have sufficient search volume, data is not displayed. “Gold Investment” finally received enough searches to show up around September 2008 and once again in February 2008. Is investing in gold starting to go mainstream?

Filed Under: Gold Tagged With: ,

February 2009 US Mint Gold, Silver, and Platinum Bullion Sales

March 5, 2009 by Leave a Comment

Another month has gone by already, so let’s take a look at the US Mint’s bullion sales for the month of February.

As an indicator of demand the bullion sales are not as useful as they used to be. This is because the US Mint continues to ration sales of one ounce Silver Eagles and one ounce Gold Eagles due to heavy demand and low supplies of blanks. They still have not begun production or sales of fractional gold bullion coins, their 24 karat gold bullion coin, or platinum bullion coins.

February 2009 US Mint Bullion Sales
1 oz. 1/2 oz. 1/4 oz. 1/10 oz. Total oz.
Gold Eagle 113,500 – – – 113,000
Gold Buffalo –
Silver Eagle 2,125,000 2,125,000
Platinum Eagle – – – – –

The total ounces of gold sold during February 2009 was 113,500. That was up from the prior month when 92,000 ounces were sold and way up from the year ago period when 27,500 ounces were sold. If the current pace continues the US Mint will be on track to sell over one million ounces during 2009.

The total ounces of silver sold for February 2009 was 2,125,000. This is up from the prior month total of 1,900,000 ounces. In the year ago period only 200,000 ounces of silver were sold due to a lengthy sales suspension.

As mentioned, the suspension of platinum bullion coin production continued through February 2009.

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