Thursday, June 23, 2011

Attack of the Euro castle

11:45 am (Hawaii) An astute poster on Turd's magnificent site noted that the CME mafia attack on gold and silver this morning may have had more to do with Spot price in Euros than Dollars. His thesis is compelling, and with gold price at all-time highs in recent weeks in Europe, it also makes sense.

ScottJ: Raid to protect Euro Gold closing? (June 23 2011)

bigdad06 points to the White House's move to kneecap crude oil this morning as an indication that the Fed/CME mafia is running out of methods to control the price of gold and silver.

(video) bigdad06: Emergency update! (June 23 2011)

On Fast Money, Doug Kass stated what a lot of retail traders and investors have noted: the Fed has no clue of what to do.

I'm debating whether to acquire some First Spouse 1/2 oz gold coin today from the US Mint. Today, they began selling Julia Grant gold coinage. I prefer the proof, never owned one before. But at $929 for the half-ouncer, that's roughly $170 over spot. I don't mind paying premium for the 5-oz America The Beautiful silver coinage, but the First Spouse gold? It's a tough call, especially when American Gold Eagles are available much cheaper. There's a side of me that is practical and has remained sealed to lower bullion prices. But a small part of me is digging the numismatic flavor of coins. Tough call. In addition, a new ATB is out next Wednesday, and on Thursday, new American Silver Eagle proofs go on sale.

I like the ATB that came in the mail a couple of weeks ago, even if it doesn't have that shiny, proof look.

12:37 pm (Hawaii) Did some checking on eBay regarding the First Spouse coins. There have been previous series (2007, '08, '09) of First Spouse half-ounce gold coins, and some of them are selling below spot. They include a half-ounce Dolley Madison ('07) currently going for $676 (with 2 days left).

I don't know how limited their mintages were, but I'm not encouraged. 

(Note: This site lists the Dolley Madison mintages at 18,355 for proof, 12,541 for uncirculated. I think that Dolley coin will get much higher before the deadline.)

Paying $170 over spot for a new Julia Dent proof or even a Mary Todd Lincoln proof doesn't make sense, especially with the possibility of Spot Gold prices dropping this summer. 

Leaning toward waiting a day. If spot prices tank again tomorrow, I'll avoid premium prices; US Mint's prices are locked and will not adjust to the spot. In that case, I'm better off waiting and getting American Gold Eagles elsewhere at "only" $100 over spot. If I wait, I may miss out on the First Spouses, but I like my chances by being patient. 

I don't have a lot of trust in eBay, but prices there are definitely superior for shoppers compared to premium at the US Mint. 

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