This article was originally printed in Numismatic News.
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Gold stands at $1,508 as I write this and silver $45.96. These numbers don’t surprise me, but they do scare me because they have moved up too fast and I fear wild volatility down the road. Where is this market going? The answer lies with Mr. Bernanke; he is either a wizard or a fool. I feel awkward calling somebody a fool with more educational degrees than my pool thermometer has digits, but China has enough greenbacks ($3 trillion) in reserve to buy all the gold and silver out there and the euro is rising even with its debt problems. The dollar ship is sinking and our leaders continue to fight over the size of the bailing bucket. Be careful. Markets go up on an escalator and down in an elevator.
Proof silver Eagles have increased in premium contrary to what I mentioned recently regarding tax time. Their golden brothers dropped a few percent and stabilized on higher bullion. Morgan and Peace dollars are just nuts. The culls (damaged or very low grade or scrubbed) are no longer discounted very much. Better date issues are in good demand and generic MS-64 to MS-66 have again moved up. While the 1895 has remained stable there seems to be some deep pocket accumulation going on. I had one this week and it quickly sold to an individual who purportedly bought two others recently.