Bullion gold premiums decline

A German firm is going to open 500 “Gold-To-Go” ATMs in Germany, Switzerland and Austria Soaring demand and innovation! This worries me because quite often when you see this kind of enthusiasm in a market it means the party is nearly over. In furtherance of this argument, virtually all premiums on bullion-related gold and silver items have declined and are now in line with those of a year ago. This includes the lower grade Mint State and circulated generic U.S. gold circulating coinage. Dealers in this market continue to be very fussy over quality, giving a false picture if you only look at the listed bids without offering actual merchandise.

On the other hand, transactions remain brisk as smart money takes advantage of the correction and continued fear of bailouts raising the possibility of severe inflation.

Morgan and Peace dollars are active at lower levels in the bulk circulated market. Peace dollars were offered wholesale by the bag in AU-Unc. (sliders) at the Atlanta show for under $15 per with no takers. Offers were in the $13.75 to $14.25 range. There is promo demand for generic Morgans by date in slider to clean cheek BU. The circulated lower grade issues are moderately sought. DMPL issues are strong. Several are higher.

Proof and mint sets are quiet but steady after a few months of buying. The few price changes this week are up.

E-mail harrymkrause@optonline.net.