Sunday, June 26, 2016

Investing In Gold And Silver Post Brexit

UK votes to leave the EU, sending gold and silver skyrocketing!

Today is a huge day for the market, and it's not a good one. You know what that means... gold and silver prices are skyrocketing! The big movement in the market today is the result of the recent vote with regard to the UK leaving the EU. Today, we'll talk about the details of the Brexit vote, how the market is reacting to the news, and what we can expect to see from the prices of gold and silver moving forward. So, let's get right to it...

Britain Consumers Vote For A Brexit

For the past several months, if you've been watching financial markets, chances are that you've seen the word Brexit thrown around here and there. The concept behind the Brexit is actually relatively simple. You see, many politicians in the United Kingdom argued that the relationship between the UK and the EU was causing economic strain on their region. As a result, hey pushed to leave the EU.

On the other hand, there were plenty of politicians that argued that leaving the EU now would be a bad move. They agree that the economic strain the UK was feeling was in large part the result of their relationship with the EU. However, they also pointed out that leaving the EU would cause issues with global trade agreements that would lead to economic hardship.

As a result, the region left the decision up to the consumers. The vote was held yesterday, and the results came in this morning. According to the results, the British people have voted for an exit.

What Does This Have To Do With Gold And Silver?
While it may seem as though a Brexit and the prices of gold and silver are two completely unrelated topics, that notion couldn't be further from reality. The truth is that precious metals have long been looked at as safe-haven investments. This means that when market or economic conditions are in question, we can expect to see gains in precious metals as investors look to keep their money safe.

Well, look around? One look at the global market right now and your eyes may turn red. Everything is tanking on the vote, and for good reason. At this point, it's clear that the British people want to leave the EU. This means that soon, the UK will be forced to renegotiate global trade agreements. Not to mention that UK backing in the Eurozone is going to dissipate. As a result, economic conditions in the UK and in Europe are likely to falter. This alone would be enough to send the prices of gold and silver skyrocketing. However, it doesn't stop there.

Due to global trade, economies around the world are heavily dependent on one another. With two of the world's largest economies headed for hardships, global economic conditions are likely to see issues. This will lead to market concerns and further growth in the prices of gold and silver.

What We Can Expect To See Moving Forward?

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from gold and silver. The reality is that at the moment, there are more questions revolving around the global economy and global market than there are answers. As a result, we're likely to see big spikes in demand for precious metals, leading to massive gains in value.
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Saturday, June 18, 2016

Taking a Shine to Silver: The Rise of Bullion Coins Around the World

Silver disappeared from circulation, but in a few decades it came back in bullion coins
Silver, so long an element of pocket change that many people still refer to their dimes and quarter dollars as “silver,” is now found mostly in special coins sold as a bullion store of value or as collectibles. The removal of precious metal from circulating coins began in the 1940s in several countries and accelerated during the 1960s.

From the mid-1960s until silver bullion coins were developed in the 1980s, collectors looking for slivers of silver at affordable prices had few options.

The United States famously adopted copper-nickel clad coinage in 1965, striking 1964-dated silver coinage well into the new year while making the transition.

By this point, most other countries had already eliminated or drastically reduced the use of silver for coinage.

Once silver departed circulating coinage in the 1960s, collector and investor choices were limited to older, often worn coins with bullion content or private bullion issues.

Then came the birth of the silver bullion coin, now one of the more avidly collected forms of the metal worldwide.

Not all silver bullion coins are created equal, though, and buyers must be aware of the differences to make educated purchases. For example, not all coins are of the same fineness. Also, while some silver bullion coin mintages are unlimited, some are struck in smaller numbers and may carry higher prices as a collector premium.

In addition, some mints change the design of their silver bullion coins every year to create fresh interest in the series, while others rely on the constancy of a standard flagship design.

What are bullion coins?

Bullion coins are governmentally issued pieces whose value is intended to be based on their precious metal content. The market value of that precious metal is generally much higher than any face value the pieces may carry as a formality.

While most coin collecting guides stress that collecting should be for fun, with potential for profit only an ancillary benefit, that suggestion does not apply equally to bullion coins acquired for investment.

Bullion coins are minted by government and private mints for a variety of countries. Most are considered legal tender in the country whose name they carry. Although primarily purchased as investments, their attractive designs and sometimes rarity mean they are also often prized by collectors.

One important characteristic of bullion coins that sets them apart from collector coins is the way they are sold. Most mints do not offer the bullion coins directly to collectors and dealers because mints are not geared to the business of maintaining the two-way market that the bullion marketplace requires. A two-way market means a seller will also buy a bullion coin back, at prevailing rates. (Mints sell collector coins and sets directly to customers, both collectors and dealers, and similarly don’t buy the coins back. The collector coins trade in the secondary market.)

At the front end of the market, the government mint that produces the coins usually sells them to a few large distributors. The two-way market begins with these distributors, who then sell the bullion coins to a wider network of wholesalers, from whom retailers purchase the coins for sale to bullion coin investors and collectors.

Because the government is not an investment firm, the government does not buy the coins back from distributors. The tiered distribution system’s most important function is to provide the buy-back market that allows investors to perceive a market value for the pieces. However, while large distributors will buy back bullion coins, smaller distributors may be less able to do so, particularly in a rapidly shifting market.

Producers (mints) price the coins based on the value of the metal in the coins at the time of sale. The pricing also includes manufacture, storage, delivery and other costs, but is much closer to a coin’s actual cost than pricing for most collector coins.

World mints charge a premium of a varying percentage above these costs to generate a profit. The percentage of the premium is higher on smaller-sized coins because, per ounce, associated costs are higher. Making and packaging, for example, 10 tenth-ounce coins will cost more than the same for one 1-ounce coin.

Bullion coins are often sold in high finenesses, or with guaranteed silver content at 1-ounce or multiples or fractions of ounces, making the calculation of silver value a matter of simple mathematics. The coins are therefore easy to trade or liquidate, as owners merely need to multiply a “spot” price by a coin’s precious metal weight to arrive at its value at the time of a transaction.

The value of the measure of silver in historic U.S. coins sometimes bought and sold at prices related to their precious metal value is not as simply calculated. For example, one such piece, an average circulated Morgan silver dollar, contains .86 ounce of silver, not a nice round number.

The first world bullion coin

While the concept of silver bullion coins has been developed and expanded over the past 30 years, the idea of a silver bullion coin really originated with the Maria Theresa taler. The .8333 fine silver taler, measuring 39.5 millimeters in diameter, weighing 28.067 grams and carrying her portrait, was issued by more than a dozen mints before her death in 1780. The coin was so famous that restrikes are still struck today by the Austrian Mint with the 1780 date.




“The taler coin long has been accepted internationally, not only in Europe, but in areas of the world where a firm local coinage did not or does not exist,” according to the Coin World Almanac, 8th edition. “It is not the only coin that enjoyed wide acceptance, but it is by far the best known.”

Tuesday, June 14, 2016

After the Silver Price Rally Last Week, Watch These Three Factors

After the Silver Price Rally Last Week, Watch These Three Factors

As last week's silver price action demonstrated, the correlation between the dollar and metals market has been strange recently.

Remember, the downbeat jobs report tanked the dollar and boosted silver prices two weeks ago.

And that silver strength continued to follow through in the first half of last trading week.

Then, something bizarre happened. As the U.S. Dollar Index (DXY) regained some strength, the silver price continued to rise. We already know that precious metals tend to move inversely to the dollar, but there are times when the trend doesn't hold.

In fact, there have been multiyear periods when the two move in the same direction.

Despite the rising dollar, silver's recent strength has taken the metal's price back above $17.

Today, I'm going to look at three recent and upcoming events and what they mean for the price of silver in the near term.

First, let's look at last week's strange – and strong – silver price performance…
Why the Silver Price Gained Nearly 6% Last Week

After finishing the previous week strong, silver prices kicked off last week on a quiet note. The white metal opened at $16.39, but moved only slightly higher on the back of a weakening U.S. Dollar Index. By the close, the price of silver gained 0.6% to $16.45.

On Tuesday, June 7, the silver price saw a slight loss as the metal went into consolidation mode. Despite the DXY heading mostly lower, prices declined 0.7% to settle at $16.34.

But that set the stage for what came on Wednesday…

Silver prices marched above the $17 mark for the first time since May 18. By the end of the day, the metal posted a big 4% gain and closed at an even $17.

This coincided with a decline in the dollar…



Thursday saw more silver price strength. After falling below $17 in early morning trading, prices reversed, climbing 1.4% to close at $17.23 on the day.

Again, this happened despite the DXY rising from 93.50 to 94.

Once Friday, June 10, rolled around, the price of silver managed to post a modest gain of 0.3%. With that, the metal closed at $17.33 for a weekly gain of 5.9%.

And last week's rally was the result of these three events that will continue to shape the performance of silver prices in the near term…

The Three Factors That Will Influence the Silver Price in the Coming Weeks

The first factor is recent volatility in global markets.

Over the last five trading sessions, the S&P 500 and Dow Jones Industrial Average have fallen 0.1% and 0.3%, respectively. Meanwhile, Asian and European markets lost about 0.6% and 2.2% on Friday alone.

Given the action of both silver prices and the U.S. dollar over the last couple of trading days, I get the sense that investors are looking to the metal for its safety appeal. As stocks plunged globally, precious metals and the dollar rallied as traders flocked to safe havens.

Here's a recent chart for the price of silver…




On Friday, silver had returned to the 50-day moving average. Now, prices have clearly moved above that line, while both the relative strength index (RSI) and moving average convergence divergence (MACD) – both of which measure the strength of silver's price movements – have turned upwards. Those trends provide bullish support for silver prices.

This changes the near-term outlook, as the probability of further weakness is diminished. But I would not rule it out completely. Interestingly, gold and silver stocks saw a slight sell-off despite the metals prices moving up.

Of course, the market's looking forward to this week's FOMC meeting, which is the second event that will move silver prices. After the dismal May jobs report, the markets seem to think the Fed won't raise interest rates. I don't think they will, and these odds are probably priced in by now.

In fact, it wouldn't surprise me to see a weak silver price performance if the Fed decides not to hike rates. After all, it appears we're moving into a "buy the rumor, sell the news" scenario.

As for gold prices, I expect traders and investors will already be looking forward to the third macro issue – the Brexit vote on June 23. I think that will end with a small majority for Britain to remain in the EU. If that's the case, it could weigh on silver and gold as concerns dissipate.

But globally, I see more market uncertainty, which will be a great boon for both gold and silver prices.

Article written by PETER KRAUTH, Resource Specialist, Money Morning • June 13, 2016

Monty 2106 Saltwater Crocodile Carded Silver 1oz Coin RAM


The fourth crocodile to be featured in the annual Australian Saltwater Crocodiles series, a proud twelve-year collaboration with Australia Zoo. The Australia Zoo family has always seen another side to them with the Crocoseum providing the opportunity for visitors to discover their beautiful, graceful and playful qualities.
2016-One-Dollar-Silver-Frosted-Uncirculated-Coin-Monty-Carded-Australian-Saltwater-Crocodile-close-up
Monty is one of Australia Zoo’s star crocodiles, who has been treated and raised with love since he was captured in 1975. He has been nurtured over the years, and grown to an amazing 3.7 metres and 400 kilograms. As well as being a star attraction to many Zoo visitors, he also starred alongside Steve and Terri Irwin in the 2002 film The Crocodile Hunter
2016-One-Dollar-Silver-Frosted-Uncirculated-Coin-Monty-Carded-Australian-Saltwater-Crocodile-reverse
SPECIFICATIONS:
Denomination
Metal
Diameter
Mass
Finish
Mintage
$1
99.9% Ag
40.00mm
1oz
Frosted Uncirculated
5000
#Silver #AustraliaSilver #RAM #RAMSILVER #SilverCoins #Coin #Proof #SilverBullion