Gold performance beats day-to-day worries
When there is a snowstorm in the Midwest, it stops routine living until we can clear the snow away. Then we go about our business as normal. Was there a…
When there is a snowstorm in the Midwest, it stops routine living until we can clear the snow away.
Then we go about our business as normal.
Was there a storm of another kind for silver and gold investors this week?
It is now Nov. 7, and the U.S. Mint reports that not a single gold American Eagle bullion coin or silver American Eagle bullion coin has been sold this month.
No Buffalo gold bullion coins have been sold, either.
Were potential buyers so hypnotized by the wall-to-wall news coverage leading into yesterday’s election that they put their long-term economic decisions on hold?
There really is no way to answer that question.
It could be a coincidence.
However, if the election was a bit of a mental storm for bullion buyers, it has now passed.
The work of going on with the routine needs of daily life commence again.
Checking the Kitco website this morning shows that gold was trading at $1,228.20 and silver was at $14.61.
Potential buyers have not missed anything of importance in their week off.
What happens when buyers return to the market will be more critical for silver Eagle buyers in the short term.
Demand has hit the brakes since September.
Gold demand has puttered along fairly routinely, neither too hot nor too cold, to put it in Goldilocks terms.
Silver is not only a precious metal but also an industrial metal.
Demand drops when the economy slows.
Might that be happening now?
Gold’s advantage is its greater independence from daily economic worries.
Long term, this has rewarded owners.
Silver is up only 15.3 times.
What does that tell you?
Both metals have risen in price over the long term, but gold has recorded a much stronger track record.
Individuals who absolutely love silver as I do might consider gold’s long-term results and be sure to own some gold, too.
Financial disclaimers say past performance is no guarantee of future results.
However, for persons who have very long-time horizons, it is the way to bet.
It pays to remember that gold will protect you not only from the financial storms of 2018 but also those of 2038, 2058, and 2078.
When you plan your next Eagle purchase, it will pay to remember that.
Buzz blogger Dave Harper won the Numismatic Literary Guild Award for Best Blog for the third time in 2017. He is editor of the weekly newspaper "Numismatic News."
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