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AGE Gold Commentary is our regular report analyzing trends in precious metals and rare coins. We monitor domestic and international markets and extrapolate from our 30 years in metals to place current events into a hard asset perspective. View archives.

7/22/2002: Gold up, stocks down!


Greetings from Dana Samuelson, Owner of American Gold Exchange.

Gold surged $8 on Friday while the Dow dropped almost 400 points. After pausing for a couple of weeks, the recent gold rally is building steam once again as panicked investors flee stocks en mass and head for safer ground.

The following excerpt from USA Today online nicely sums up the current state of affairs:

Gold Rallies

Gold stole the spotlight in trading Friday, ending more than 2 percent higher as U.S. stocks again plummeted and the dollar weakened in currency trading.

Metals trading followed a familiar pattern — with U.S. stock markets sharply lower, traders retreated for the safety of gold.

Moreover, the dollar's latest weakness against the Japanese yen — reflecting foreign investors withdrawing funds from the U.S. market because of questions about the economic outlook — makes gold more affordable for foreign investors, setting the stage for higher prices for the precious metals (from USA Today Online, 7/19/2002).

Gold pointing toward $400

Gold is up as much as 18% already this year in what looks to be the most significant extended rally in a decade. We believe gold will trade somewhere between $375 and $425 an ounce within the next 12 months.

Our old friends the Aden Sisters, who correctly predicted the 1980 gold peak of $850 an ounce, have recently commented that they believe gold is on track to hit at least $440 an ounce in the near future. We've added their recent market commentary to our web site:

The Dow falls while gold rises

You're probably aware of the tumultuous past few days (and months) on Wall Street, and the last thing that you want to hear is some analyst telling you that things are only going to get worse. You also know that gold and silver continue to show strong upward gains.

What you may not know, however, is that last Friday marked the first day in which the Dow closed below its post-9/11 low of 8200. Stocks are now in the worst shape since the mid-1990s, and confidence is plummeting. The dollar continues to shrink in value against other forms of currency such as the euro and the yen, and the US trade gap is soaring to new record levels.

The impact of a Dow under 8000 is monumental, and could be the final snowflake that triggers an avalanche. While gold has already gained substantially from stock woes, the biggest gains in gold are yet to come. Now is the time to take account of your stock market losses and preserve what remains! To protect yourself in our current financial environment, you must have two things: foresight and the gumption to act. The writing about stock declines and gold gains is on the wall for all to see. The action is up to you!

Shipwreck losses

Unlike almost every other gold coin in the last twelve months, the Central America and Brother Jonathan Shipwreck gold coins, so heavily hyped and marketed by some large dealers over the past two years, have declined significantly in price. Please note that we have NEVER recommended the Central America or Brother Jonathan Shipwreck gold coins. In fact, we predicted their price decline two years ago in our in-depth analysis of hoard coin price performance, entitled "Coin Hoards Past & Future." For details, please follow this link:

Our gold coin recommendations are making money for our customers. If you are dealing with a broker who recommended shipwreck coins to you for investment, you should change brokers!

Our conservative recommendations for gold investors

For the last 18 months we have strongly advised our customers to accumulate U.S. Gold Eagles bullion coins and select classic U.S. $20 gold double eagles and $10 gold eagles. All of our recommendations have made advances in price during this period of time. The big gains still lie ahead, so it's not too late! If you get started now, or add more to your existing gold position, you'll stand to gain the most when the market truly boils over.

Please visit our website,, for complete gold investment information.

Power Pair #2 - Our highest recommendation!

U.S. $10 Liberty (MS 63) and $10 Indian (MS 63) gold eagles.

New special for gold investors! These classic U.S. $10 gold eagles are fantastic portfolio builders. In 1989 they traded dealer-to-dealer for more than $5,000. Available today for as low as $1150 per pair, near their lowest prices in 20 years! They offer true scarcity, beautiful designs, and high collector demand at rock-bottom prices. Ready to pop in rising coin market! Don't miss them. Our highest recommendation!

1-oz. U.S. Gold Eagles $400

No IRS reporting requirements for these bullion coins.

British Sovereign "Kings," Brilliant Uncirculated

These are the best classic European gold coin for popularity, price, and scarcity.

$20 Liberty, in MS62-64, and $20 Saint-Gaudens, in MS63-65

These gorgeous, historic coins offer complete financial privacy, excellent leverage to the gold price, high collector and investor demand, and are still downright cheap today. Prices are now moving up, but the big price increases are on the way. It's not too late to buy these classic U.S. gold coins near their 20-year lows.

Let me repeat, in 20 years we've never been more bullish on gold than we are today! We highly recommend aggressive purchases of gold now.


Dana Samuelson
Amercian Gold Exchange, Inc.


Metal Ask      Change
Gold $1,780.89           $0.00
Silver $18.21           $0.00
Platinum $832.41           $0.00
Palladium $1,973.67           $0.00
In US Dollars