Publish date:

Metals market quiets down in new year

On Jan. 1 Japanese bullion dealers were required to start reporting bullion sales in excess of 2,500 yen, or about US $3,000, to the government. The fear of this new rule and threat of a new tax were enough to cause widespread liquidation by the public. Japanese bullion dealers were reportedly swamped

Could it be that simple? By that I mean government-stimulated liquidation and portfolio window-dressing.

ArtLargImg24589

On Jan. 1 Japanese bullion dealers were required to start reporting bullion sales in excess of 2,500 yen, or about US $3,000, to the government. The fear of this new rule and threat of a new tax were enough to cause widespread liquidation by the public.
Japanese bullion dealers were reportedly swamped. The window-dressing issue results from portfolio managers taking year-end profits from their best asset class (precious metals) to cover or dress up the poor performance of the rest of the investment portfolio.

Metal Mania Online Seminar Recording

Gain valuable insight on making the most of your collecting efforts!

Since last writing gold has gained 2 percent, silver over 3 percent and platinum only 1 percent. It became apparent to me was as soon as the new year arrived the selling pressure in the precious metals seemed to subside and the market has a more normal sense to it.

U.S. gold type coins have not shown much strength and continue to have some erosion in premium. Even a few issues in MS-67 have declined, namely the Liberty quarter eagle and the $20 Saint. I would consider this a buying opportunity. Another item that seems awfully cheap is the $20 Liberty in MS-64 and -65.

In the non-gold type arena, things are quiet and steady with flying eagle cents taking off in MS-62 and -63, and 3-cent silvers needed by the bucket in G-VG for promos. Interestingly, there is also strong investor demand at the far end of the spectrum for 3-cent silvers in proof grades.

More Coin Collecting Resources:

State Quarters Deluxe Folder By Warmans

• Subscribe to our Coin Price Guide, buy Coin Books & Coin Folders and join the NumisMaster VIP Program

Strike It Rich with Pocket Change, 2nd Edition