On the last day of November, the Chinese Central Bank lowered the bank reserve requirement by 1/2 percent to allow its banks to lend more money. This is the first time the Chinese have eased money supply in over three years.
Not to be outdone, the European central bank along with the Swiss joined Canada, the U.S. and Japan in lowering the discount to international banks by 50 basis points (1/2 percent). The markets liked this move because pretty much everything went up. The U.S.
Fed is now bailing out the world’s banking system, so now money being created is lost on a more massive scale than before.
There has been little noticeable movement in better date Morgan and Peace dollars over the last few weeks. Circulated common date issues remain in demand by the bag and one major buyer will take bag quantities of borderline uncirculated coins at over $40/per. DMPL dollars has been the most active sector of the higher prices Morgans over the past month.
Proof and mint sets remain in the doldrums with perhaps a minor increase in activity but no price gains. Our charts still are running almost 80 percent of changes down. If the last two days of silver increases continue, we should see some positive price action.
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