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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.


7/6/2001: Summer doldrums arrive

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Summer doldrums arrive
The long-term perspective
Trade-in Blow-outs

Summer doldrums arrive

The summer doldrums have firmly settled upon the Northern Hemisphere-and the gold market-as we celebrate this year's U.S. Independence Day. Like the rest of us, gold tends to go on vacation during July and August, or at least take extended siestas, and this year is no exception. Despite the alarming messages being broadcast by financial markets worldwide, gold remains unusually-even absurdly-undervalued, moving now into a channel between $265 and $275 per ounce.

The current price of $26? per ounce represents the low side of the recently established trading range, and therefore warrants another update to our regular readers. At these sleepy summer prices, gold is offering an excellent buying opportunity ahead of autumn spikes in demand (and prices). Increasingly this summer, we expect to see this market try to push higher, followed by a sudden surge to the upside with little or no warning. So be prepared!

The long-term perspective

Many customers have recently asked the same question: "Why hasn't gold already responded with a sustained movement higher?" My answer is, please be patient. The dollar continues to remain unusually strong, and we haven't experienced quite enough pain yet in other financial sectors to spark the stampede into gold that I believe to be inevitable. It is just a matter of time.

Attitudes are certainly changing among the pundits. Jacqueline Thorpe of the Financial Post recently wrote: "The United States may be standing on the precipice of a recession. The U.S. dollar looks dangerously overvalued, inflation is near a 10-year high, and equity markets continue to churn. If ever there was a time to invest in gold this might be it. Gold bulls say the deteriorating economic conditions combined with several other factors has put gold in the best position it's been in years to make a push upward."

As Paul Walker, Director of Gold Fields Mineral Services Ltd, a London-based commodity research company, put it: "I think we're starting to see not a dramatic but a subtle shift in attitude towards gold as an investment class, and this is what will drive the gold price in both the near and longer term."

But like turning the Titanic, these things take time-even though the iceberg is clearly visible and looming in the distance!

Trade-in Blow-outs

We still have some super values left in our Trade-in Blow-out inventory. We are offering these inexpensive coins at wholesale prices while they last. Thanks to those who have already bought!

And finally, don't forget our favorite classic European gold coins: British Gold Sovereign "Kings" Brilliant Uncirculated. The most popular European gold coins are temporarily available at drastically reduced premiums, providing a great opportunity to build core gold holdings and protect against inflation. Please use the link just below to learn more about the "King"

As always, thanks for your time!

Sincerely,

Dana Samuelson, Owner and President
Dr. Bill Musgrave, Vice President

  

Metal Ask      Change
Gold $1,476.94           $0.00
Silver $17.01           $0.00
Platinum $934.12           $0.00
Palladium $1,946.20           $0.00
In US Dollars