As gold contemplates the $1,000 barrier, here’s a roundup of gold, silver, and precious metals related stories that are interesting for one reason or another. Each headline comes with a snippet of commentary. Enjoy.
A Myth Concerning Gold Confiscation
Examination of a clause in Executive Order 6102, which receives little attention. In addition to the exemption from confiscation for numismatic gold, there was also an exemption for up to five ounces of gold per person.
U.S. Gold, Going or Completely Gone?
According to the United States Geological Survey, nearly 3,000 metric tonnes of gold were exported during 2008 in the form of “gold compounds.” Gold compounds consist of products containing gold content such as gold paint. The amount of gold claimed to have been exported in this format is more than 14 times the annual US gold mine production. What is going on here?
Mint can’t account for missing gold
In another story about missing gold, an audit of the Royal Canadian Mint turned up a discrepancy between the mint’s accounting records and physical precious metals holdings for gold, silver, and other precious metals. The article also describes the largest reported theft from the mint when a machinist pocketed 85 ounces of gold.
Liberty Dollar – Federal Indictment
Bernard von Nothaus, who created an “alternative currency” of gold and silver Liberty Dollars was formally charged “with uttering and passing, and attempting to utter and pass, a coin of silver in resemblance of genuine coins of the United States in the denominations of five dollars and greater, and intended for use as current money”. More than a year ago, the headquarters of his company was raided by the federal government and more than two tons of gold, silver, and copper coins were confiscated.
Buffet Gets ‘Comeuppance’ After Gold Outperforms
Every time someone writes a negative article about gold, they invariable measure the returns since January 1980 to support their preordained conclusion that gold is a bad investment. Someone has finally turned the tables and compared an investment in gold to an investment in Berkshire Hathaway stock since May 2005, a much more favorable investment time frame for gold.
A particularly vacuous article courtesy of the Wall Street Journal. From the title of the article I thought it would at least have some substance, but it turns into another run through of the “risks of buying bullion” and the lack of a measurable intrinsic value. The author winds up the article by suggesting that Treasuries are a preferable safe haven to gold.
Northwestern Mutual Makes First Gold Buy in 152 Years
For the first time in history, Northwestern Mutual, the third largest US life insurance company, has invested in gold. A great quote from CEO Edward Zore, “The downside risk is limited, but the upside is large. We have stocks in our portfolio that lost 95 percent. Gold is not going down to $90.” Indeed.
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.