United Coin and Precious Metals 2/18 950 Silverado Street La Jolla, CA 92037

China Breaking Gold Demand Records

With the latest gold withdrawal numbers for the week ended July 3 from the Shanghai Gold Exchange (SGE) staying up above the 40 tonne mark at 44 tonnes, we can now safely confirm that the half-year total figure has indeed been around the 1,180 tonne mark – comfortably a new record for the period. The previous record was in 2013 at just under 1,100 tonnes withdrawn in H1 and when the full year figure was 2,197 tonnes. Normally Chinese demand falters through the northern summer with a pick-up again from late September, but it seems to have been holding up particularly well so far this year, after a strong start leading up to the relatively late Chinese New Year. This means China is comfortably on track towards a new record full year figure if the stock markets collapses don’t take too much of a toll on investor liquidity and dent retail demands.  For the moment at least government intervention seems to have arrested the market falls but it remains to be seen whether markets now will restart the downward move or pick up again.

A word of caution though on the SGE figures. Nowadays these include withdrawals out of the international division, the SGEI, which can move in and out of the Shanghai Free Trade zone without technically landing in China at all. This proportion is thought to be very small in relation to the domestic figures, and some will end up in China anyway, but this does bring a small degree of uncertainty as to the actual total which might be considered as Chinese domestic demand.

As we have pointed out beforehand, Chinese demand as suggested by SGE withdrawals is a far higher figure than the mainstream Western gold analysts attribute to their interpretation of Chinese retail demand figures. In part this is due to categorisation with some elements of what could be considered overall Chinese demand (notably gold bought for financial sector transactions) not being included in the analysts’ consumption figures. But the huge discrepancy between SGE and analysts’ assessments will continue to be argued over. Regardless of this, the SGE figure has to be a very good overall indicator at least of Chinese gold demand trends and it is obvious now that this has been a particularly strong half-year for Chinese gold flows. The question now is whether the flows will hold up going into what is normally a strong second half of the year.

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How To Find Gold In San Diego County

Gold is all around us. It doesn’t take much knowledge to find even just a bit of gold.

Gold is about 19 times heavier than water and about 3 times as heavy as iron, gold will always sink to the lowest level as possible.

Rivulets are little rivers which form when water flows down a hillside, forming larger streams. It erodes the earth and rock and gold is caught in the flow. Gold falls into early cracks or is stopped by obstructions along the way. Gold collects in these cracks.

Gold sinks as soon as it can. Where stream bends and widens or where natural falls or obstacles are represent great opportunities to find gold. The gold you will find is mostly small flakes and very fine. Black sand magnets are useful.  If your gold is magnetic it is fools gold.

Gold prospecting takes place in San Diego County. It’s not just in the California Mother Lode where gold can be found.  San Diego is home to a rich gold prospecting heritage. There are also precious gems.

As the San Diego Reader reports:

In August of 1870, when Louis Redman went to pick wild grapes along a creek over the mountain from Julian, he happened upon the American Dream. Something glinted in the rust-colored leaves. He brushed them aside and found the rainbow’s end: a chunk of bluish quartz thick with gold. To mark his claim, Redman raised a small U.S. flag on a pile of stones. Someone named the mining town that sprouted on the site for the “banner.”

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Gold Futures Suffer Small Loss In First Six Months

Gold futures on Tuesday marked a loss for the first half of the year as speculation that Greece and its creditors could strike a last-minute deal and strength in the U.S. dollar helped send the metal’s prices lower for the session.

Gold for August delivery on Comex  $7.20, or 0.6%, to settle at $1,171.80 an ounce. On Tuesday, prices tapped a low of $1,165.40 — a level prices haven’t settled at since mid-March.

Year to date, prices based on the most-active contracts were down by roughly 1%. For the month, they lost about 1.5%. Read: These are 2015’s best commodity gainers so far

September silver SIU5, -0.19% fell 11.4 cents, or 0.7%, to $15.581 an ounce — for a year-to-date loss of 0.1%.

Greece on Tuesday asked for a new bailout amid a last-minute diplomatic push to seal some kind of agreement before the country’s current rescue deal expires and it defaults on a payment to the International Monetary Fund.

Against that news backdrop, the euro EURUSD, +0.0000% traded lower versus the U.S. dollar and the U.S. ICE dollar index DXY, +0.55% strengthened, putting pressure on dollar-denominated gold prices.The only option under which we can see investors buying more gold is if the European Central Bank cuts off the emergency liquidity assistance, said Naeem Aslam, chief market analyst at AvaTrade. This increases the chances of a Grexit to 50% as the banks will be under tremendous pressure to issue some sort of currency IOU, he said.

The only option under which we can see investors buying more gold is if the European Central Bank cuts off the emergency liquidity assistance, said Naeem Aslam, chief market analyst at AvaTrade. This increases the chances of a Grexit to 50% as the banks will be under tremendous pressure to issue some sort of currency IOU, he said.

Under these circumstances, volatility can explode to the upside, pushing gold demand higher as the major risk will be the contagion issue, which “could very well take place in the absence of liquidity in the market or investors losing their faith in the euro,” said Aslam.

Gold prices Tuesday likely saw additional pressure from a lack of gold buying, particularly in India, said Chintan Karnani, chief market analyst at Insignia Consultants. “Indian rural buyers are waiting to get a clear picture of monsoon rains before they commit to buy gold,” he said.

 

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Demand For Gold In Europe Skyrockets On Greece Fears

Demand in Europe for gold is on the rise by Greek customers. Sovereign gold coins sold at double the five-month average in June, the UK Royal Mint stating in an email.

Sales on Saturday and Sunday were the highest since Cyprus limited cash withdrawals in 2013, thanks to increased German, French and Greek buying.

“Most of our common gold coins are sold out,” Daniel Marburger, a director of Frankfurt-based CoinInvest.com, said by phone. “When people learned that the Greek banks will be closed, they started to think that it may not be such a bad idea to have some money in gold.”

In La Jolla, gold demand has also increased as far as we can tell in our little shop. Not only have we been selling an assortment of bullion coins, but demand for pre-1933 gold coins as increased handsomely. Sellers, as well, have taken advantage of the highest gold price in recent months.

 

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Gold Mining Sector On Way Up?

New projects are taking foot in the gold mining industry, despite the fourth year of downtrodden gold prices. The market knows that future economic uncertainty will lift this sector.

The completed gold mining merger and acquisition number says something about the sentiment: $3 billion in projects through first five months of this year, twice of 2014′s numbers, says Thomson Reuters GFMS, a metals research consultancy.

Interest in the market, at the same time, is near record highs, with some fund managers examining the sector. In the first quarter, Paris-based asset manager Carmignac Gestion bought 11.65 million shares of Goldcorp.

“The perception that mining equities show good value is starting to spread,” said Hedley Widdup, a fund manager at Melbourne-based Lion Selection Group, which invests in small mining companies and explorers.

“Since the start of this year, there has definitely been a change in sentiment,” he said, though it “is far from pervasive.”

As Reuters reports:

To be sure, no one is expecting an overnight resurgence and signs of pain are still widely visible – in bankruptcy filings, job cuts and an industry preoccupation with reducing costs.

And though the gold price is not forecast to recover this year, a rebound could start next year, albeit slowly. GFMS is forecasting an average price of $1,170 an ounce this year, below the current $1,185. Its 2016 forecast is $1,250.

“We felt that finally it looked as though you might be able to pick up projects,” said Marc Prefontaine, Chief Executive of Canadian gold miner Orla Mining (OLA.V), which started operations this month. He said he didn’t know when the gold market would rebound, “but we just felt it was not going any lower.”

Prefontaine, who was CEO of Grayd Resources before it was sold to Agnico-Eagle Mines (AEM.TO) in 2011 for $275 million, says conditions are good for a full-time return to the industry.

“There has been more interest from generalists at the broker conferences for meetings,” said David Harquail, Chief Executive of gold royalty company Franco-Nevada Corp (FNV.TO). ”Often these generalists have no positions in the gold sector.”

“I don’t think commodity prices are going to dramatically go up from here but I do think that the individual companies’ ability to cut costs will differentiate their performance,” he said. In the gold sector, he favors South Africa’s AngloGold Ashanti.

A few large generalists have come onto Kinross Gold Corp’s share register in recent months, said Andrea Mandel-Campbell, a spokeswoman for the world’s seventh biggest gold producer. She declined to name them.

“There is recognition that there is value in the sector and the market is starting to sense that the companies are better managed now,” said Joseph Forster, portfolio manager at Van Eck, one of the gold mining sector’s biggest shareholders.

At United Coin & Precious Metals we have seen the effects of increased interest in precious metals. Sales are up. We anticipate this to continue as parts of the sector start to rebound from the consolidation.

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Chinese Gold Demand Decreases, India’s Increases

Chinese shares have been on the rise while gold demand has been on the waydown, according to Wall Street Journal. In India, demand is strong, often times breaking records as the India government tries to move citizens into paper.

The Shanghai market has increased 41%, and mainland Chinese investors have in part moved Hong Kong shares up about 16%.

“Everybody wants to get on to the stock-market bandwagon,” said Victor Thianpiriya, a precious-metals analyst with Australia & New Zealand Banking Group Ltd. “It is having a big impact on jewelry demand.” According to WSJ, gold imports might decrease by as much as 20%. China has accounted for almost a third of global gold consumption.  Sentiment regarding gold has already been downbeat as US interest rates are anticipated to rise, increasing the dollar’s value.

Demand from India – usually 20% t0 25% of gold consumpion – has gone up, with the government letting up on import restrictions, increasing hopes Indian buying will beset lacking Chinese demand. 

China’s import of gold decreased 7% from one year ago, down to 272.9 metric tons during the first quarter of 2015, led by a 10% slide in jewelry consumption, according to the World Gold Council, with Indian demand increasing by a total 15% to 191.7 tons; jewelry sales increased by 22%.

“I have been in the jewelry business for 40 years, but never has our business been so quiet as now.…No, not even when there was an outbreak of SARS,” or Severe Acute Respiratory Syndrome, in 2003, said Michael Shui, manager of a shop owned by Big City Jewellery Ltd.

“We had customers speculating on physical gold, but they don’t come anymore,” says Karone Huang, the manager of a gold-jewelry shop in Shanghai, adding that some of her employees left when sales dropped. Ms. Huang said that “75% of our employees are investing in stocks, [though] a lot of them are new to the market.”

She said a close friend made quick money by gambling on stocks, but lost money equally fast. “Their heads are hot. Gold has less risk,” she said.

At United Coin & Precious Metals we have seen steady demand from precious metals investors. La Jolla knows that precious metals are an excellent way to diversify your gold portfolio, whether it is with numismatic coins or bullion.

Posted in Expert Advice

Gold Demand Increases In San Diego

The market data this week has been all over the place, and the debate rages on about whether or not interest rates will stay as they are throughout the year or not. It seems gol demand is increasing.

Jobs data has sent the dollar higher, which has not deterred gold’s movements this past week, which has been northward. Furthermore, although demand was down in April, demand has increased quite a bit in May and many people foresee this trend continuing. Continue reading

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Bullion US Mint Product Sales Surging

Two things of interest show up when looking at the latest United States Mint sales stats. First the 2014-W Proof American Silver Eagle lost 1,581. And second, the 2015-W American Proof Silver Eagle beat the 2015 Silver Proof Set for the first time since the set launched three weeks ago. The increases were 8,594 compared to 6,936.

 

2015-W Proof American Eagle Silver Coin

Photo of a 2015 Proof American Eagle Silver and its packaging

 

In other stats, bullion American Silver Eagles are performing strong since their sales rationing ended on June 1. The bullion coins jumped by 975,000 ounces during the first week of June, the highest since the week after the 2015-dated issue debuted in January. Silver Eagle bullion sales through this week have advanced another 650,000. They stand at just over 1.6 million for the month so far, less than 400,000 away from topping all of last month’s sales.

The table below shows the latest sales stats for collector coins and related silver products from the US Mint. Sunday, June 7, is the as of date.

US Mint Sales: Silver Coins for Collectors

Previous Sales New Sales Unit Increase % Increase Mintage Limit
2015 Proof March of Dimes Silver Coins 47,431 47,839 408 0.86% 500,000
2015 Uncirculated March of Dimes Silver Coins 21,499 21,613 114 0.53%
2015 March of Dimes Special Set 74,664 74,913 249 0.33%
2015 Proof U.S. Marshals Service 225th Anniversary Silver Coins 91,209 91,208 -1 0.00% 500,000
2015 Uncirculated U.S. Marshals Service 225th Anniversary Silver Coins 34,312 33,662 -650 -1.89%
2015 US Marshals Service 225th Anniversary Three-Coin Proof Set 15,000 14,983 -17 -0.11%
50th Anniversary Kennedy Half-Dollar Silver Coin Collection 211,953 212,736 783 0.37% 225,000
2014 Proof Baseball Hall of Fame Silver Coins 268,076 268,076 0 0.00% Sold Out
2014 Uncirculated Baseball Hall of Fame Silver Coins 131,924 131,924 0 0.00%
2014 Proof Civil Rights Act of 1964 Silver Dollars 61,992 61,992 0 0.00% Sold Out
2014 Uncirculated Civil Rights Act of 1964 Silver Dollars 24,720 24,720 0 0.00%
2014 Franklin Roosevelt Coin and Chronicles Set 12,882 12,959 77 0.60% 20,000
2013 Theodore Roosevelt Coin and Chronicles Set 15,145 15,145 0 0.00% Sold Out
2014 Limited Edition Silver Proof Set 34,927 35,314 387 1.11%
2013 Limited Edition Silver Proof Set 47,971 47,971 0 0.00% 50,000
2015 Congratulations Set 5,509 5,681 172 3.12%
2014 Congratulations Set 7,235 7,237 2 0.03% none
2013 Congratulations Set 18,096 18,100 4 0.02% none
2013-W Silver Eagle Two-Coin Set 235,689 235,689 0 0.00% Sold Out
2015-W Proof Silver Eagles 403,685 412,279 8,594 2.13% none
2014-W Proof Silver Eagles 763,502 761,921 -1,581 -0.21% none
2013-W Proof Silver Eagles 868,494 868,494 0 0.00% Sold Out
2015 America the Beautiful Quarters Silver Proof Sets 75,286 76,146 860 1.14%
2014 America the Beautiful Quarters Silver Proof Sets 115,815 115,892 77 0.07% none
2013 America the Beautiful Quarters Silver Proof Sets 138,451 138,451 0 0.00% Sold Out
2014 Annual Uncirculated Dollar Coin Sets 26,747 26,768 21 0.08% none
2013 Annual Uncirculated Dollar Coin Sets 43,150 43,150 0 0.00% none
2012 Annual Uncirculated Dollar Coin Sets 27,300 27,300 0 0.00% Sold Out
Making American History Coin and Currency Sets 56,857 56,857 0 0.00% Sold Out
2015-W Uncirculated Silver Eagle 150,481 152,131 1,650 1.10%
2014-W Uncirculated Silver Eagle 224,532 224,532 0 0.00% Sold Out
2013-W Uncirculated Silver Eagle 178,941 178,941 0 0.00% Sold Out
2012-W Uncirculated Silver Eagle 202,504 202,504 0 0.00% Sold Out
2015 Silver Proof Sets 215,164 222,100 6,936 3.22%
2014 Silver Proof Sets 421,878 422,175 297 0.07% none
2013 Silver Proof Sets 419,720 419,720 0 0.00% Sold Out
2012 Silver Proof Sets 395,443 395,443 0 0.00% Sold Out
2015-P Kisatchie 5 Ounce Silver Coins 17,552 17,608 56 0.32%
2015-P Homestead 5 Ounce Silver Coins 18,523 18,373 -150 -0.81%
2014-P Everglades 5 Ounce Silver Coins 22,208 22,220 12 0.05% 30,000
2014-P Great Sand Dunes 5 Ounce Silver Coins 23,553 23,636 83 0.35% 30,000
2014-P Arches 5 Ounce Silver Coins 28,434 28,434 0 0.00% 30,000
2014-P Shenandoah 5 Ounce Silver Coins 28,451 28,451 0 0.00% 30,000
2014-P Great Smoky Mountains 5 Ounce Silver Coins 24,710 24,710 0 0.00% Sold Out

 

Bullion American Silver Eagles added 700,000 in the last six days compared to the 1,300,000 increase in the previous week. Wednesday, June 10, is the as of sales date for sales shown below.

US Mint Bullion Sales: 2015 American Eagle Silver Coins

January 5,530,000
February 3,022,000
March 3,519,000
April 2,851,500
May 2,023,500
June 1,625,000
2015 Total 18,571,000

 

Totals for all of the America the Beautiful Five Ounce Silver Bullion Coins released since 2013 are below.

US Mint Sales: 2013 – 2015 America the Beautiful Silver Bullion Coins

Unit Increase Total Sales
2015 Homestead Silver Bullion Coins Sold Out 35,000
2015 Kisatchie Silver Coins 42,000
2015 Blue Ridge Silver Coins N/A N/A
2015 Bombay Hook Silver Coins
2015 Saratoga Silver Coins
2014 Great Smoky Mountains Silver Bullion Coins Sold Out 33,000
2014 Shenandoah Silver Coins 25,000
2014 Arches Silver Coins 22,000
2014 Great Sand Dunes Silver Coins 22,000
2014 Everglades Silver Coins 34,000
2013 White Mountain Silver Coins Sold Out 35,000
2013 Perry’s Victory Silver Coins 30,000
2013 Great Basin Silver Coins 30,000
2013 Fort McHenry Silver Coins 30,000
2013 Mount Rushmore Silver Coins 35,000

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Global Selloff Good For Gold

Gold demand has picked up in La Jolla in recent weeks, with many old customers coming in for bullion deals. Rare coin buyers and sellers, as well, have come out as if portending of what could be a busy six months to the end of the year in precious metals.

The stock market has had some issues in recent weeks, so it is still unclear exactly what will happen there. The uncertainty is good for precious metals, but still, too early to tell.

“I still think the market is in sell-rally mode and will test lower levels once the rate hike appears to be a certainty,” said Steve Scacalossi, director of TD Securities’ Global Metals group in New York.

“However, I think it will become a huge bear trap as the pace of rate hikes will be slower than anticipated and I expect higher prices by end of year.”

People are still holding out hopes for the retail economy despite a declining dollar in the longterm.

“In terms of data, investors really want to be sure that retail sales are also good this week. They don’t want to run ahead of themselves,” ABN Amro analyst Georgette Boele said, referring to the scheduled release on Thursday of U.S. retail sales for May.

“I don’t think the fall in gold is over,” said Afshin Nabavi, head of trading at MKS. “We’re not seeing any kind of real interest on the physical front, so for me it points to an eventual breach of $1,150.”

Investors are nervous in the market.

“There is a general nervous tone to markets today that is favorable for gold,” said Bill O’Neill, a broker at Logic Advisors.

“This looks like more of a one-day rally, with the general trend of lower prices continuing,” Mr. O’Neill said.

So long as the global selloff continues things are looking good for gold.

“As a global sell off in stocks invited a ‘flight to safety bid’ to precious metals,” said Tyler Richey, an analyst for the 7:00’s Report.

“South Africa’s importance in terms of gold has been diminishing for years…Last year, the country was the world’s sixth-largest gold producer with 145 tons, which equates to 4.9% of global mining production according to the WBMS,” gold strategist wrote.

“Nonetheless, a prolonged strike could have an impact on supply and prices,” Commerzbank strategists said.

 

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Gold Can’t Be Found In Europe At The Retail Level

As retail business picks up once more in the United States for gold and silver, in Europe, retail business has come to a screeching halt. But not due to lack of demand. Instead, reports are surfacing that there is no gold left at the retail level in Europe.  While coin shops are definitely buying anything they can, they are not selling. First reports came in via Martin Armstrong.  Then, another popular financial blogger chimed in:

I’ve been in Europe a couple of days now and one of my main goals here, other than protesting the G7, Bilderberg and visiting Liberland, was to find out if what Martin Armstrong wrote about – that there is a shortage of gold at the retail level in Europe – is true. What I’ve found is that, indeed, it is true, as in many European countries one is no longer able to buy retail gold coins for investment.

Shops are buying precious metals still, but no one is selling. Spanish banks that once sold gold to the public have shut down in Spain, and if people leave Spain wearing a lot of jewelry, authorities weigh and inspect the precious metals, as Armstrong reports.

Could the same thing happen in the US? Absolutely! But there are some major differences between Europe and US right now.

Mainly, the US economy has been showered with reports of an approving Economy. In Europe, news about a failing Greece has made headlines, with the northern powers unwillingness to budge on payment terms adding to the uncertainty. Under these conditions, demand in Europe for gold has remain strong as has the price.

When the US economy returns to 2008 conditions or worse I believe we will begin seeing significant changes that are similar to the reports coming out of Europe. Gold and silver will be difficult to get. Its been that way before. One need just look back to 1980 to see that.

There is still uncertainty however whether or not the reports are true. No Europeans have chimed in on the topic, which makes me skeptical. My thinking is, if you’re well-connected, you can probably still get gold, if even at a little bit of a premium.

For now, there is still gold in La Jolla, California, where United Coin & Precious Metals is located, nestled in west-central part of San Diego County. Demand is increasing, that is for sure.  And when the economy starts getting topsy turvy, the perfect storm could coalesce.

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World Spot Prices
(Updates Every 30 Seconds)
2.57

Gold

Bid: $1,310.89
Ask: $1,311.89
0.08

Silver

Bid: $17.30
Ask: $17.40
-9.51

Platinum

Bid: $954.67
Ask: $959.67
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