Metals Weak, but Silver Dollars Jump|
April 08, 2013
This article was originally printed in Numismatic News.
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Follow the money. Cyprus is history. North Korea doesn’t matter. Nobody cares about Russian and Japanese monetary easing and QE is wonderful. All that matters is that equities like the Dow Industrials, Dow Transports, NASDAQ, utilities and S&P are up and running. Paper on steroids.
The selloff in precious metals has primarily come from the liquidation of paper holdings moving into the above and not physical product, which is actually running contrary to current price action. The dollar is strong and Federal Reserve Notes are flowing into stocks.
We have silver at an extremely tempting 58 to 1 versus gold and platinum stuck at .98 to 1. In my humble opinion this is the start of a major shakeout that will last several months to a few years.
Precious metals always hit a period of apparent collapse before any meteoric rise. Just don’t bet the farm on what I write.
I could be tempted to bet the farm on the Mint State silver dollar market. Not only is the trend continuing, it has expanded in scope with many more dates in the positive column. Several issues have added as much as 10 percent in various Mint State grades over the past two weeks. It is pretty impressive to see an 1895-S move from $8,500 to $9,350 in a week. Very few of us own such a coin, but it is a good indicator. Several Philadelphia Mint issues that are not as common as they are thought to be have moved up in MS-63-64.
The tone of the proof and mint set market has weakened some, but many late date issues are rising with the 2012 silver set now at $137.50.
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