Month: March 2019

These Are The Six Countries With The World’s Largest Gold Reserves

Sirhc

Authored by Lawrence Thomas via GoldTelegraph.com,

For almost a decade, global central banks have been avid gold buyers. Gold purchases by central banks in 2018 rose 36 percent over the previous year. Central banks are now holding 366 tons of the yellow metal. These gold purchases are the largest since 1971 when President Nixon ceased the gold standard and the tie between the U.S. dollar and gold, which rapidly led to the devaluation of the U.S. dollar.

Not every central bank has followed this trend. Venezuela, which is in the midst of an economic collapse, sold 25 tons of gold in 2018 in an attempt to repay its debts. But Venezuela is an exception. Other central banks are eager to increase their gold reserves as a hedge against economic uncertainty. Gold ownership by central banks is at a 50-year high as global purchases have increased 75 percent over the past year.

1. United States

The Federal Reserve holds the largest amount of gold of any other central bank, 8,133.5 tons. This is 75.2 percent of its foreign reserves. The Federal Reserve has not been as active in the gold-buying spree as other countries in an effort to keep the dollar from devaluing.

2. Germany

Germany’s central bank has been busy repatriating 674 tons of gold from the Banque de France and the Federal Reserve Bank. During the Cold War, the country’s closeness to what was then Russia-controlled East Germany drove Germany to store its gold with other countries. Now, the Deutsche Bundesbank is calling its gold back home. This move is expected to be completed by 2020. Germany currently holds 3,370.0 tons of gold, which account of over 70 percent of its foreign reserves. Germany, which experienced hyperinflation in the 1930s which saw the Deutschmark become valueless, has learned its history lesson.

3. Italy

Italy plans on holding on to its 2,451.8 tons of gold. The Bank of Italy has stated that it considers gold a safe investment in times of economic turmoil and a safeguard against the volatility of the U.S. dollar. Gold represents 67.9 percent of Italy’s foreign reserves.

4. France

France has gradually ceased selling its gold reserves in an effort to hold on to the 2,436.0 tons of gold it currently has. This amounts to over 60 percent of the country’s foreign reserves. Marine Le Pen, leader of the National Front Party, has advocated for a freeze on the sale of gold, as well as repatriation of all of France’s gold currently being held by foreign countries.

5. Russia

The Russian Central Bank has been bullish on gold for six years. In 2017, it overtook China to become the fifth largest holder of gold reserves. Much of this is due to trade tensions between the U.S. and Russia. Two years ago, Russia purchased 224 tons of gold and sold off much of its U.S. Treasury debts. This move is seen as a defensive effort to weaken the U.S. dollar as the top global reserve currency. Currently, Russia holds 2,119.2 tons of gold in reserves. The Russian Central Bank is leading the way in gold purchases in its efforts to devalue the dollar.

Since the U.S. placed economic sanctions against Russian, its central bank has been accumulating gold as a safety net against having its assets frozen. In 2018, it purchased 8.8 million ounces of gold.

6. China

China, which currently holds 1,864.3 tons of gold in reserve, a low amount among the leading gold-holding countries, but there have been many reports that the country has left some of the gold purchases off its books. However. China is expanding its reserves slowly. It is also the leading producer of gold in the world.

Global central banks now hold the greatest share of the world’s gold, approximately 33,800 tons. Gold has been a critical diversification tool, a safety hedge against inflation, or as collateral for loans.

Central banks in Austria and Switzerland have also indicated that they consider gold an essential reserve against future emergencies. The Polish central bank expressed the fact that their gold reserves allow diversification and greater independence and less reliance on the financial stability of other countries.

Sweden, Greece, and Portugal have expressed the same sentiments. Gold is a haven of safety during economic turndowns.

Goldmoney Research@GMoneyResearch

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Countries have held #gold as a reserve asset throughout history…

Here are the top ten holders:

= 8,133.5
= 3,369.7
= 2,451.8
= 2,436.0
= 2,119.2
= 1,864.3
= 1,040.0
= 765.2
= 612.5
= 607.0

Is your country on the list?
#GoldmoneyResearch

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2109:51 AM – Mar 28, 2019Twitter Ads info and privacy171 people are talking about this

The world’s central banks are counting on the power of gold to help them through bad economic times. Is this something investors should be thinking about, as well? The current economic growth experienced around the globe is expected to come to an end, as all economic upswings do. Some economists are predicting a recession by 2020. In the event of such an occurrence, investors should be position by having a proven hedge during bearing times.

1907-D Liberty Double Eagles NGC/PCGS MS65

Sirhc

Last Year, Gem, D-Mint, $20 Libs

Although authorized as a U.S. branch mint in the 1860s, the Denver Mint operated as an assay office for its first four decades until coins were finally minted there in 1906. Liberty double eagles were only produced at the Colorado facility in 1906 and 1907, with a total production for both years of less than 1.5 million pieces. Accordingly, Gems are quite scarce and eagerly sought. Listed at $6,000 in the CDN CPG, $6,200 in the PCGS price guide, $8,500 in the NGC price guide and $6,350 in Trends.

Offered at $5,500 each delivered

We have three coins available…

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Coinage legislation left out the word “The”

Sirhc

Courtesy of Numismatic News by RICHARD GIEDROYC

■ Why is “The” missing from the inscription “United States of America” on our coins?

Section 10 of the Mint Act of April 2, 1792, says, “…with this inscription, ‘UNITED STATES OF AMERICA,’…” Once this tradition was established, nobody saw any need to change it. Particularly in the early days when dies were hand-made, they economized in every possible way, so perhaps this was another reason for not adding the extra three letters.

■ I have a 1964-D dime that has been examined by several dealers who tell me it is a proof. Can this be true?

It is unlikely that your ’64-D dime is a proof, as the information that proof coins were struck only at Philadelphia that year is correct. What you may have is a first strike from new dies, which often will have an appearance similar to a proof. Send the coin to an authentication service if you are still in doubt.

■ Going through a lot of cents, I notice that a number have weak or missing letters in “STATES OF,” or the “E” and sometimes the dot in “E PLURIBUS.” What causes this?

This is a frequent question, since such defects are readily noticed. That very frequency is an indication of the value – none – because of the high mintages involved. The cause is poor die design, a perennial failing of U.S. coins, which allows too much metal to flow into the obverse design, not leaving enough to come up in the reverse design. If you check the wheat cents, you will find the same weakness on the “O” in “ONE” on a high percentage of the coins.

■ Weren’t there actually three different date sizes for the 1960 cents – a small, medium, and large date?

This is another situation akin to the problems with the different mintmarks on the 1979 and 1981 proof coins. Shortly after the small date 1960 and 1960-D cents were first reported, enthusiastic collectors reported that there were three sizes, and for a time the medium dates were advertised right along with the small. Later it was conclusively proved, based on Mint records, that only two different size dates were used for 1960.

■ I’ve heard that there is a $1,000 reward for a certain variety of the 1964 nickels. I have one, so will you get the reward for me, please?

I’m sorry to disappoint you, but I know of no variety of any kind in the minting of specifically the 1964 or 1964-D nickels that is worth $1,000, or even a significant fraction of that figure. The only one I can think of off hand is the “PLURIDUS” variety, attributed by the Mint to die abrasion, which is worth upwards of $150 to $175, depending on the grade. I don’t know of any legitimate offer of a “reward” for coin varieties, either.

■ What are so-called dollars?

They are privately issued medals or tokens similar in size to the old silver dollars.

Always Popular 1856 Flying Eagle Cent PCGS PR64

Sirhc

Several hundred proof (or pattern) Flying Eagle cents were made in 1856, and delivered to congress for approval on the proposed size reduction of the denomination. When collectors became aware of these pieces, demand grew rapidly, and so the Mint struck more of the 1856-dated cents in the following few years for direct sale to collectors, with a final production total estimated between 1,500 and 2,500 coins. Debate continues on whether or not the entire mintage was of proofs, or if the restrikes were from regular production dies, but whatever the case, any Flying Eagle cent bearing the date 1856 remains highly sought-after. Listed at $20,300 in the CDN CPG, $20,500 in the PCGS price guide and $20,000 in Trends.

Offered at $18,500

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Tied for Highest Graded, Desirable 1838 Gobrecht Dollar PCGS PR65

Sirhc

J-84 Restrike. These popular and rare Gobrecht dollars were struck between June 1859 and 1863. They were struck on orders of Mint Director James Ross Snowden as trade pieces for rare Washingtonia needed for the Mint Cabinet Collection. To date, only two Original 1838 Gobrecht dollars are known, one is in the Smithsonian and the other in the ANS. Thus, collectors assembling a date set of Gobrecht dollars must seek a Restrike of this rare date. In hand, this coin is much more colorful and attractive than seen in our images The PCGS population is only six with none graded higher. Listed at $145,000 in the PCGS price guide.

Offered at $132,000

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American Eagle Sales as of 3/28/2019

Sirhc

March 28, 2019

The following chart includes the year to date totals for 2019 Gold and Silver American Eagle Sales from the U.S. Mint as of 5pm on March 28th. The chart also shows the difference in sales from our last report on March 22nd.

Gold and Silver American Eagle Sales
Gold
CoinSales in oz. /#coins+ from 3/21/2019
One oz.
63,500
63,500		500
500
Half oz.
8,500
17,000		000
000
Quarter oz.
6,000
24,000		000
000
Tenth oz.
11,000
110,000		000
000
Total
89,000
214,500		500
500
Silver
CoinSales in oz. /#coins+ from 3/21/2019
One oz.
7,025,000
7,025,000
000
000

5 oz Silver Burnished ATB’s America The Beautiful Coins All in Box and Papers (OGP)

Sirhc

A nice selection of dates/types

TYPE# OF COINSPRICE
2010- MT HOOD1$182
2010 YELLOWSTONE2$182
2010- YOSEMITE4$182
2010-HOT SPRINGS1$182
2011- CHICKSAW1$182
2011- OLYMPIC1$230
2012 EL YUNQUE1$203
2012 ACADIA 5 OZ SIL10$520
2012- CHACO1$189
2012- DENALI4$304
2012 HAWAII2$655
2013- FORT MCHENRY2$169
2013- GREAT BASIN2$169
2013- MT. RUSHMORE1$169
2013- WHITE MOUNTAIN1$169
2014 ARCHES2$169
2014 EVERGLADES3$169
2014- GREAT SAND DUNES3$169
2014 GREAT SMOKY MOUNTAINS1$169
2014- SHENANDOAH1$169
2015 KISTATCHIE3$169
2015 BLUE RIDGE PARKWAY1$169
2015- BOMBAY HOOK1$169
2015- HOMESTEAD3$169
2015 SARATOGA1$169
2016 CUMBERLAND GAP1$169
2016 FT MOULTRIE SUMTER1$169
2016- HARPERS FERRY2$169
2016 SHAWNEE4$169
2016 THEODORE ROOSEVELT13$169
2017 EFFIGY MOUNDS2$169
2017 ELLIS ISLAND1$203
2017- George Rogers CLARK2$169
2017 OZARK1$169
2018 Block ISLAND12$169

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Vibrant $5 Indian Key – 1929 Indian Half Eagle PCGS AU55

Sirhc

The 1929 half eagle issue is a curious one, struck during the year that the Great Depression began its decade-long stranglehold on the American economy, an unusual denomination to produce at a time when the theme song (written a couple of years later) was “Buddy, can you spare a dime?” Although the Mint struck 662,000 half eagles in 1929, few were ever distributed to the public. Most of the mintage was still in government vaults when the 1933 gold recall order mandated its melting. Since the issue never circulated to a meaningful extent, most pieces known today are in various Mint State grades. Examples such as this are in demand among budget-restricted collectors, and the supply is extremely limited. This is one of just 13 so-graded by PCGS.

Offered at $27,500

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Burnished Gold Eagles All with Box and Papers

Sirhc

Burnished Gold Eagles are some of the lowest minted coins, yet they do not trade much over their bullion counterparts.  In fact, they were struck 42 times fewer than the bullion gold eagles.  Most of the time, you find a coin or two.  We’ve put together a little bigger grouping that should be well received. 

Available Coins:
2-2006-W $50 at spot plus $125
1-2007-W $50 at spot plus $125
2-2007-W $5 at $225
7-2008-W $10 “Key Date” at $875
1-2016-W $50 at spot plus $125

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IT’S OFFICIAL; U.S. Silver Production The Lowest In More Than 70 Years

Sirhc

POSTED BY SRSROCCO IN MINING, NEWS, PRECIOUS METALS ON MARCH 20, 2019 — 11 COMMENTS

With the latest release by the USGS, silver production in the U.S. is now the lowest in more than 70 years.  We have to go all the way back until the year after World War II ended to see U.S. silver production less than it was in 2018.  While many reasons can be attributed to the decline, the main factors are falling ore grades and mine economics.

Unfortunately, there just aren’t too many economic silver deposits in the United States, especially with the high level of environmental and governmental regulations.  Instead of dealing with all the bureaucracy, companies are looking to Mexico and South America to open new silver projects.

Regardless, U.S. silver production declined by more than 100 metric tons last year, or 10% in 2018, mainly due to the ongoing closure of the Lucky Friday Mine in Idaho.  The Lucky Friday Mine has been shut down ever since the United Steelworkers went on strike on March 13, 2017.  However, the dropoff in silver mine supply can’t all be blamed on the Lucky Friday Mine.  Domestic silver production has been trending lower for the past two decades:

In 2000, the U.S. produced 63.7 million oz (1,980 metric tons) of silver compared to just 29.7 million oz (923 metric tons) last year.  Thus, U.S. silver production has fallen by more than 50% in less than two decades.  Silver production in the U.S. ramped up significantly during the 1990s due to the McCoy-Cove Silver Mine in Nevada.  At its peak, the McCoy-Cove Mine supplied 20% of the total U.S. silver production:

I don’t have a chart of U.S. silver mine supply over the past 100 years, but I checked the USGS data, and in 1946, the country produced only 713 metric tons (mt) of silver.  Interestingly, while silver production had declined due to the war focusing its efforts on other strategic metal mining (2,090 mt in 1941 to 903 mt by 1945), the significant drop off in 1946 was also due to mine strikes at base metal mines and smelters.  Because most of the silver is a by-product of base metal mining, the strikes had a profound impact on overall production.

So, even though the shut-down of the Lucky Friday Mine reduced U.S. silver production by 3-4 million oz, it doesn’t account for the additional 30 million oz lost since 2000.

At some point, Americans will become aware of the monetary properties of gold and silver.  However, when they finally do, domestic silver mine supply will likely not be enough to satisfy the demand.