Good time for precious metals

This article was originally printed in Numismatic News.
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The past week has certainly reminded us of the wisdom of owning some precious metals as insurance, as long as you don’t invest the mortgage money.

Gold is nearing a test of its all-time high and silver, while up nearly 10 percent this week, has a way to go. The current silver price level is about where most of the higher end trading was done 31 years ago before that spike upward to the $50.52 silver price of Jan. 21, 1980. I think while there is significant resistance at this level, it is a very healthy market signal to my gut that we grind it out here for a little while.

While oil is up significantly, platinum is under pressure because of lower production fears (Libya) that would result in lower usage of the metal.

MS-63 Morgan dollars are pushing at a 20 percent increase with Peace dollars not far behind. See this week’s CMAG charts. There is continued wholesale bidding for generic white/whitish Morgan and Peace dollars in MS-63 and up with the qualifying statement, “over 1,000 coins call.” The rest of the silver dollar market is strong on the low end and there are a good number of dates actively sought after in MS-64 and MS-65, especially Carson City issues.

Proof sets are showing a little health although the strength seems to be silver related and some prestige set promotion.

E-mail harrymkrause@optonline.net.