September Increases in American Gold and Silver Eagle Bullion Sales
As the economic outlook continues to be uncertain, and a third round of quantitative easing from the Fed triggered a rise in precious metals’ pricing, the mint is seeing higher levels of American Gold Eagle and American Silver Eagle sales.
With September sales becoming public, the Mint reported their second highest monthly totals this year for sales of the predominant U.S. Bullion coins, both in Gold and Silver. A rise of 13.41% in 1 oz. American Silver Eagles boosted sales to 3,255,000 for September, while American Gold Eagles (all four weights) saw a 75.64% increase, leading to purchases of 68,500 troy ounces.
Bullion Coin |
12-Sep |
YTD 2012 |
| American Gold Eagle 1 oz | 63,000 | 410,500 |
| American Gold Eagle 1/2 oz | 2,000 | 61,000 |
| American Gold Eagle 1/4 oz | 4,000 | 62,000 |
| American Gold Eagle 1/10 oz | 35,000 | 250,000 |
| American Gold Buffalo 1 oz | 85,000 | 96,500 |
| American Silver Eagle 1 oz | 3,255,000 | 25,795,000 |
| America the Beautiful Silver 5 oz | 25,500 | 85,100 |
If you’re interested in buying (or selling) American Eagles or any other form of bullion, give us a call. We’ve been advising clients on bullion investing for over 30 years and we’re happy to discuss how precious metals may fit into your investing strategy.
Precious Metals Outlook: Platinum to Gold Ratio
With all the attention gold and silver receive; platinum is sometimes overlooked in terms investing potential. Historically, platinum has moved in tandem with other precious metals. As with gold and silver, the past 10 years have generally been favorable ones for platinum as we’ve seen the precious metal rise from $456.00/oz. to a peak of $1,543.20/oz in the past 10 years – a rise of 238%.
That being said, most analysts agree that platinum is currently undervalued in relation to gold. Platinum is considerably less common than gold or silver, with annual mining production at 30 tons/year vs. gold at 2,800 tons/year and silver at 23,000 tons/year. That level of mining, combined with industrial and jewelry use at 90% of total platinum production, leaves little for investing and those factors typically lead to volatile pricing.
During economic downturns, new automobile production slows down and discretionary spending on jewelry drops. Both of those circumstances typically cause a significant drop in the demand – and consequently the price of platinum. In 2008, platinum plunged by nearly two thirds of its value and last year saw a large drop, followed by a recovery that still left platinum priced under gold.
The “ideal” platinum to gold ratio is generally considered to be 1:1 but right now, platinum is hovering near 95% of the price of gold. That discrepancy, coupled with predictions of global inflation, lead many experts to recommend the addition of platinum to precious metals portfolios.
At Southern Bullion Coin & Jewelry, we advise clients on precious metals investing and facilitate purchases and sales of all precious metals, with immediate availability and payment, low margins and virtually no limit on transaction size. Contact us today for expert advice.
How much is an Olympic Gold Medal worth?
Every two years, this question is raised and since we’re “gold experts,” it’s natural that we get emails and phone calls asking us how much those coveted Olympic Gold Medals are actually worth. It’s a great question and curiosity drives many to seek an accurate answer, so here it is.
First, it must be said that the value in any Olympic Medal is truly based on the fact that it’s an actual Olympic Medal and not the volume and purity of its precious metal composition. An Olympic Medal goes far beyond its content; symbolizing thousands of hours of training, unending sacrifice, dedication, and achievement.
On to the question though and be prepared to be slightly disappointed. The Olympic Gold Medal – we’ll specifically detail the 2012 London Gold Medal - is actually 92.5% silver. It’s made up of silver primarily, mixed with copper and plated in gold. With a total weight of approximately 387 grams, the precious metal composition is:
- Silver – 92.5% or 358 grams
- Gold – 1.34% gold or 5.2 grams
- Copper - 6.16% or 23.8 grams
Even with gold and silver prices near record historical highs, the total “melt value” as of the time of this writing is roughly $592. Nothing to sneeze at, but certainly not befitting of the beauty and symbolism which actually defines the medal’s worth.
For fun, let’s imagine that the medal was solid gold. As of right now, gold is at $1,618.90 per ounce. 387 grams of pure gold would have an approximate melt value of $20,145. A little more interesting, wouldn’t you say? To take the exercise one step farther, let’s review what the same gold medal, at 387 grams of solid gold, would have been worth during the past 10 years’ Olympic Games:
- 2010 Vancouver - $13,743.29
- 2008 Beijing - $10,644.99
- 2006 Turin, Italy - $6,783.92
- 2004 Athens - $4,978.15
- 2002 Salt Lake City - $3,772.72
If your goal is to win an Olympic Medal, we’re sorry to say we can’t really help you. If you’d like to invest in Gold though, you have come to the right place. Give us a call at the location nearest you or email info@sbcoin.com and let our experts work with you to maximize your portfolio.
Buying a New Rolex vs. a Pre-Owned Rolex
If you’ve made the decision to buy a Rolex, you are to be commended. Your sense of quality and style has led you to the time-honored “king” of all watches and your wrist will soon be the envy of those around you. You’ll walk with a renewed sense of confidence, get helped a little faster in high-end stores and may even get a little more attention from the opposite sex.
Now comes the question though… do you choose to buy a new or pre-owned Rolex?
Since quality, options and style are virtually identical in pre-owned and new Rolexes, most shoppers make the decision based on price.
As you probably know, a new Rolex is a lot like a new car. The moment you leave the showroom with it, the value drops significantly – around 30% is a reasonable average. But, that drop can work to your advantage if you think of it in the following terms.
For this example, let’s say your budget is $4,500 and we assign a value of 30% to the pre-owned price decrease:
Buying a new Rolex = your $4,500 will buy a $4,500 Rolex
Buying a pre-owned Rolex = your $4,500 will buy a $6,428 Rolex
Another way to look at the difference is by price of the same Rolex, identical model and features. We’ll use the 30% pre-owned price decrease again, paired with a new Rolex price of $4,500.
Buying a new Rolex = your $4,500 Rolex will cost you $4,500
Buying a pre-owned Rolex = your $4,500 Rolex will cost you $3,150
As you can see, there’s a considerable difference between the two options. A difference that will either affect how nice your Rolex is or how nice you want to be to your wallet. You may even choose pre-owned and balance the two directions: getting a somewhat nicer Rolex, while still paying less than you had planned.
We’re biased since we proudly sell pre-owned Rolexes to thousands of customers all across the country, but that doesn’t mean we can’t give you advice. However, we will refrain… other than to conclude: if you still don’t know whether you should purchase a pre-owned or new Rolex, we suggest you read this blog entry again.